Shipping could cut carbon emissions by up to 30% by 2030 if European regulators demand the highest performance levels for vessels calling at its ports under new environmental rules, a new study has found.
The cuts are based on European policymakers insisting on ships hitting the top two A and B grades under the International Maritime Organization’s Carbon Intensity Indicator (CII).
The first ratings from grades A to E will be given to ships above 5,000 gt in 2024 under the CII scheme, which is based on vessel performance.
The ratings are given based on a calculation of annual emissions, distance travelled and capacity — and will steadily become more stringent.
A study of more than 15,000 vessels by performance data firm Bearing this year suggested that only 27% of ships would receive an A or B grade.
It said more than half of ships would receive a D or E grade, with general cargo ships and bulkers among the worst performers.
By enforcing CII, the European Union would be the first mover “in the race to reduce emissions from the world’s biggest ships and would boost newcoming industries for green fuels and energy-saving technologies”, said Panos Spiliotis of Environmental Defense Fund Europe, which commissioned the study.
However, the study warned that the greatest gains would only be achieved if flag states properly policed the scheme. The report’s author — research consultancy CE Delft — said the enforcement failure would require new measures to reward or punish ships depending on their ratings.
Environmental Defense Fund Europe said the EU could use the powers of port state control to require ships calling at the bloc’s ports to achieve the necessary CII grades.
It said it was unclear what enforcement measures were being considered by the biggest flag states against the most polluting E-grade ships.
Operators of ships rated D for three consecutive years or E for a single year will have to develop an approved plan of corrective actions to bring a vessel into compliance by the end of the following year.
The IMO’s new strategy set in July to cut shipping emissions aims for an industry operating at or near net zero greenhouse gas emissions by 2050, based on a 2008 baseline.
It also set a series of midterm targets, including the aim of a 20% cut by 2030 while striving for 30%.
The CII scheme is one of the key pillars of the strategy, and operators can secure better ratings through a combination of factors, including slow steaming, retrofits and the use of new fuels.
A large share of the global fleet is expected to reduce sailing speed to meet the targets of the IMO measure.
But the industry has widely criticised the scheme, which says it depends on how the ship is used. The rating will be affected by the nature of the trades and the length of voyages.
Analysts have said a rating could be improved through unnecessary ballast legs to increase distances with lower fuel consumption.
John Denholm, the immediate past president of the UK Chamber of Shipping, said the scheme was “not fit for purpose” because it could be too easily gamed.
Arsenio Dominguez, the incoming head of the IMO, told a session at London International Shipping Week that a review was already underway to deal with some of the problems.
“We are hearing you loud and clear,” he told critics.
Read more
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