Shipping associations cite inadequacies in IMO's Carbon Intensity Indicator scheme

Shipping associations cite inadequacies in IMO's Carbon Intensity Indicator scheme
2 Jul 2024, https://www.bairdmaritime.com/shipping/shipping-associations-cite-inadeq...

Shipping associations BIMCO, Cruise Lines International Association (CLIA), Intercargo, Intertanko, InterManager, and the International Chamber of Shipping (ICS) recently issued a joint policy statement calling on the International Maritime Organisation (IMO) to amend its current Carbon Intensity Indicator (CII) system to avoid unintended consequences that are contradictory to reducing overall greenhouse gas (GHG) emissions.

The IMO has already received 78 proposals submitted by every sector of shipping, also calling for amendment to the CII. In addition, the above associations are calling for those who are considering the CII rating as a potential for decision making in the future to work closely with shipowners and flag administrators to determine whether the CII rating accurately reflects a ship’s environmental performance before making decisions.

The shipping industry is actively pursuing net zero emissions by 2050, consistent with the IMO's 2023 Strategy on Reduction of Greenhouse Gas Emissions from Ships.

With the IMO’s initial CII ratings delivered from flag states to shipowners, the shipping industry notes the CII scheme’s inadequacies while continuing to work to ensure a CII methodology that is accurate, reliable, and implemented in a manner that fully reflects the intent of the IMO Strategy for the world’s fleet of commercial ships.

The associations said that, to achieve the IMO’s intent, the CII scheme must reflect the true efficiency rating for each ship. A one-size-fits all instrument, as the CII is currently designed, has inherent flaws that work against its intended purpose of supporting the associations' collective objective of reducing GHG emissions across the maritime industry.

The IMO’s Marine Environment Protection Committee (MEPC), at its 81st session in March 2024, publicly acknowledged significant concerns raised by IMO member states and industry, recognising “shortcomings and unintended consequences of the CII mechanism and the general agreement that these concern should be fully considered and addressed during the CII review process.”

The IMO MEPC further noted that possibly inaccurate or misleading CII ratings could result in unintended adverse consequences for some ships, particularly with respect to business-critical decisions made by the finance, insurance, chartering, brokering and port sectors.

The associations are also calling for public administrations, flag states, ports, and destinations to acknowledge that the current CII system has inherent shortcomings recognised by the IMO and may not accurately reflect the true environmental performance of ships.