Carbon Intensity Indicator – Frequently Asked Questions

In 2023 the International Maritime Organization is expected to implement new initiatives to cut the shipping industry's carbon footprint. The new greenhouse gas ... s-Suite s-Insight CarbonIntensityIndicator–FrequentlyAskedQuestions CarbonIntensityIndicator–FrequentlyAskedQuestions Share Twitter LinkedIn Facebook ByDr.ThiloDückertandThomasWeberIn2023 theInternationalMaritimeOrganizationisexpectedtoimplementnewinitiativestocuttheshippingindustry'scarbonfootprint.Thenew greenhousegas(GHG)strategywillputincreasingpressureonallindustryactorsandrequireshipownerstoreporttheirsustainableoperationsannually.TheCarbonIntensityIndicator(CII),effectivefromJanuary2023,willindicatethevessel'soperationalefficiency.Weaskedourexperts,Dr.ThiloDückertandThomasWeber,toanswerthemostpressingquestionsaboutthenewregulations.    Question:WhataretheemissionreductiongoalsfortheIMO?Answer:InlinewiththeUN’sclimateactiontargets,theIMOaimstoreducetotalgreenhousegasemissionsfromshippingby50%by2050(against2008levels),andtoreducethecarbonintensityofallshipsby40%by2030. Question:Doesthe40%applytoindividualships?Answer:Thereductiongoalsapplytotheentireglobalshippingindustry.ThishasbeensimulatedintotheCarbonIntensityIndex(CII)ratingsystemforindividualshipstomeetthegoalsbythedeadline.Question:WhatvesselswillCIIapplyto?Answer:TheCIIisanoperationalefficiencyindicatorthatmeasuresavessel’scarbonintensityovertimeandisgiveningramsofCO2emittedpercargo-carryingcapacityandnauticalmilestravelled.Itwillberequiredbyallcargo,RoPax,andcruiseshipsabove500GT(grosstons).ThecategoryofoffshoreandseismicvesselscategorywouldneedtobecheckedtodetermineifCIIregulationsapplytothem.Question:HowwillCIIbecalculated?Answer: TheCIIisderivedfromtheAnnualEmissionsRatio(AER):annualfuelconsumptionmultipliedbytheCO2emissionsfactor,dividedbythetransportnetwork(distancesailedbyashipmultipliedbycapacity).Furthermore,someadjustmentfactorsmaybeappliedtotheaboveformula.   Question:IsCIIcalculatedonanannualbasisoronindividualvoyages?Answer:Datawillbereportedonanannualbasis.Question:WhenwilltheCIIregulationbeenforced?Answer:EffectivefromJanuary2023. AskOurExperts WanttolearnmoreabouthowthenewCIIregulationwillimpactyourbusiness?Reachouttoourexpertstoday. Question:DooperatingspeedsandlatentmilesimpactCII?Answer: OperatingspeedhasthegreatestimpactonCIIduetothecubicrelationshipbetweenspeedandconsumption.Thecapacityiseitherthedeadweightorthegrosstonnageofthevessel,dependingonthetypeofvessel.Hence,thecapacityisconstantintheaboveformula.Furthermore,theIMOiscurrentlydiscussingalistofexclusionsandcorrectionstothiscalculation,whichwillbefinalizedbeforeitcomesintoforceinJanuary2023.Question:Wouldyardstaysand/orlaid-upvesselsbeexcludedfromtheCIIcalculation?Answer:Itisnotyetdecidedhowcertainoperationsandeventswillbeaccountedfor.Asamatteroffact,thetradingpatternofavesselmaysignificantlyimpacttheCII.Forexample,considertwosistervessels.Ifoneofthevesselshasmorefrequentportcallsandtheotherspendsmoretimeonseapassages,theymayattaindifferentCIIvaluesand,mostlikely,differentratings.Inthiscase,thelattervesselwouldbenefitfromthetradingpatternandachieveabetterCII.Image:TheboundariesfortheCIIclassifications  Question:WhatwilltheCO2emissionsfactorbe?Answer:ThesameasthatappliedtothecurrentFuelOilDataCollectionSystem(DCS)scheme.Question:WhatdatawillneedtobereportedinapplyingforaCIIclassification?Answer:Firstly,thesamedatathatisrequiredforcurrentDCSreporting:alldistancessailed,alltimesatsea,andallfuelconsumptionthroughouttheyear.Secondly,datathatisrequiredtosupportadjustmentsmadetothefuelconsumptionusedforcalculatingtheCO2emissions,e.g.,fuelconsumptionbycargoheating/coolingsystems.Question:HowwouldaCharterdecisionimpactCII?Answer:Besidestheinstructedspeedandconsumption,thetradingpatternand,therelationbetweentimesunderwayandwaitingorinport,mayalsoimpacttheCIIrating.TheshipisgivenanannualratingrangingfromAtoE,andiftheratingisbelow‘C’,thecontactwouldnotbecompatiblewithenvironmentalregulations.ThismightbecomemoreprevalentovertimeastheCIIratingbecomesstricter.Question:WhensimulatingCIIforfutureyears,whichyearshouldbeusedasabase?Answer:TheIMOreductiontargetsfor2050arebasedondatafrom2019,butkeepinmindthattheCIIregulationwillonlycomeintoforcein2023.TheCIIreferenceiscalculatedbasedondatafor2019,andreductionfactorscontinuallylowertherequiredannualoperationalCII.Thesereductionfactorsaresofardefineduntil2026andmaybecomefurtherstrengthenedafterward.ThemostimportantparameterforavesselwillbeitsCIIrating. SubmitYourQuestions Wanttodivedeeper?OurexpertswillanswerallyourquestionsaboutthenewCIIregulation. Question:WhathappensifavesselreceivesaD/Erating?Answer:Anyshipreceivingaratingof‘D’forthreeconsecutiveyearsorreceivingaratingof‘E’inasingleyearwillberequiredtoimplementacorrectiveactionplan,partoftheShipEfficiencyManagementPlan(SEEMP).Thiswillimpacteachvessel’sannualstatementofcompliance.Question:Howcan‘just-in-time’systemsimpactCII?Answer:Speedisthelargestfactorimpactingemissions,andeachknotreductionresultsinconsiderablesavings.Thus,byoptimizingaship’sspeedandroutingtoavoidlongstaysatanchorageawaitingaberth,emissionreductionscanbeachieved.Question:Canavesselownerincreasedeadweight?Answer:Alargershipshouldbemorecarbon-efficientthanasmallership,butthiseffectofscalehasbeentakenintoaccountwhendefiningthecalculationofthereferenceCII.Whileoptionsareavailablefortuningthedeadweight,thepossibleadjustmentissosmallthatitwilllikelywillnotmakeasignificantdifference. Question:WillconsumptioninportsimpactCII?Answer:Aship’soverallfuelconsumptionthroughouttheyearwillincludestaysinport.Thevesselusuallyconsumesfuelduringportstaysoridling,emittingCO2butinamuchlowerquantitythanwhenonaseapassage.However,duringthesetimesthereisnotransportworkdone.So,thedenominatoroftheCIIformulaisnotincreasingjustthenumerator,aslongasnopermissibleadjustmentsaremade.Question:Iffleetsizesincreasebecauseindividualshipsareslowsailing,wouldCO2emissionsincrease?Answer:Yes,thisisapragmaticwaytoapproachthenewregulationsandwouldreduceemissionsforasingleshipbutwouldnotreduceemissionsfortheworldwideeconomy.Question:Whatifworldtradeincreases?Answer:Theregulationsapplytocarbonintensity,nottotalemissions.Question:Ifashipweretodecreaseitsdistancetraveled,howwoulditaffectitsCIIrating?Answer: Ifashipreducesitsdistancetravelled,italsoconsumeslessfuel.Moreover,itcouldexecutethesamevoyagefromAtoBatalowerspeedandarriveatthesametime.So,routingefficiencyhasahugeimpactontheCIIandthecorrespondingrating.  Image:RequiredannualoperationalCIIovertimeinStormGeo'sCIIDashboard Question:HowwouldimprovingshipfittingsimpactCII?Answer:Alltechnicalmeasurestoimproveaship’semissionsorfuelconsumptionfromadesignperspectivewouldpositivelyimpactaCIIcalculation.Question:DoesStormGeohaveanalertsystemformonitoringcarbonemissions?Answer:Yes,theweatherserviceproviderStormGeohasamobileapp,awebportal,andanemailalertsystemtotrackdataandmonitorshipperformance.Question:Willexistingusersofs-InsightreceiveatoolforCII?Answer:Yes,thistoolwillbeaddedtotheexistingsoftware. MeettheAuthors ThiloDückert ThiloDückert VicePresident,FleetPerformanceManagement ThomasWeber ThomasWeber Director,FleetPerformanceProducts Productrange s-Insight|EnvironmentalPerformance Monitortheenvironmentalimpactonemissions,improvetheenvironmentalperformanceandkeepthefleetcompliantwithregulationsandinitiativeslikeEUMRV,UKMRV,IMODCS,CII,SeaCargoCharter,ESI,CSIandCCWGthroughsimple,trustworthydatareportingandvalidation. Viewdetails s-Insight|PerformanceCenter Receivecomprehensiveandcustomizablefleetmonitoringservicesalongthevoyage,completewithalerting,reporting,andadhocinvestigativeservicesforefficiencyandcostsavings. Viewdetails s-Routing|StrategicPowerRouting Maintainconstantpower,optimizefuelconsumptionandreduceemissionsbyadjustingRPMbasedontrackandweatherforecast. 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