Published: September 2024
Shipping – as one the world’s largest transport sectors – is experiencing major regulatory challenges to achieve the international targets on reducing GHG emissions. This new edition provides a comprehensive overview of all of these complex regulations in one place, guiding readers through compliance with the 2021 amendments to MARPOL Annex VI, the revised 2023 IMO GHG Strategy and the EU’s new Emissions Trading System (EU ETS).
The EU ETS began to apply to international shipping at the start of 2024 and EU allowances are due to be surrendered by shipping companies in 2025. A brand new chapter in this guide focuses solely on the EU ETS to explain how it currently applies to ships trading in and out of the EU. Readers can expect to be better informed on:
•The shipping company’s responsibility under the EU ETS
•What voyages are covered by the EU ETS
•What to include on emissions monitoring plans
•How to calculate the amount of allowances owed and more
The interlinked relationship between reducing underwater radiated noise and GHG emissions is detailed, including a new appendix that lists approximately 100 different reduction measures.
Reducing Greenhouse Gas Emissions: A Guide to International Regulatory Compliance also plainly sets out the existing IMO regulations. Specifically, the application of the Energy Efficiency Design Index (EEDI) for new ships, Energy Efficiency Existing Ship Index (EEXI), Carbon Intensity Indicators (CII) and submission of Ship Energy Efficiency Management Plans (SEEMPs).
This guide is essential for shipowners, operators and managers subject to the regulations, particularly MARPOL Annex VI. It will also be valuable to those involved in the design of new ships and modification of existing ships, including naval architects.
Contents
Chapter 1 Introduction
1.1 Overview
1.2 Air pollution from ships
1.3 The 2023 IMO GHG Strategy
1.4 Implications of the 2023 GHG Strategy
1.5 Annex VI of MARPOL Convention
1.5.1 History of MARPOL Annex VI
1.5.2 2021 Revised MARPOL Annex VI
1.6 Expected developments
1.6.1 Carbon Intensity Code (CIC)
1.6.2 Lifecycle assessment (LCA) guidelines
1.6.3 GHG fuel standard (GFS)
Chapter 2 Key concepts
2.1 Overview
2.2 Energy Efficiency Design Index
2.2.1 EEDI: Key facts
2.2.2 ‘Attained EEDI’ formula
2.2.3 ‘Attained EEDI’ correction factors
2.2.4 EEDI reduction rates and reference value
2.2.5 EEDI in practice
2.2.6 Ship minimum propulsion power
2.2.7 EEDI database and reporting requirements
2.3 Energy Efficiency Existing Ship Index
2.3.1 EEXI: Key facts
2.3.2 ‘Required EEXI’ reduction rates and reference line
2.3.3 ‘Attained EEXI’ formula
2.3.4 Challenges with some parameters
2.3.5 Compliance with EEXI in practice
2.4 Carbon Intensity Indicators
2.4.1 CII: Key facts
2.4.2 ‘Attained CII’ calculation
2.4.3 Correction factors and voyage adjustment
2.4.4 ‘Required CII’
2.4.5 CII ratings for ship performance
2.4.6 Compliance with CII framework
2.5 Ship Energy Efficiency Management Plan
2.6 Data Collection System for Fuel Oil Consumption of Ships
2.6.1 Fuel oil consumption
2.6.2 Annual operational CII
Chapter 3 MARPOL Annex VI regulations, including the 2021 amendments
3.1 Overview
3.2 General provisions in MARPOL Annex VI
3.2.1 General application and definitions
3.2.2 Exemptions
3.3 MARPOL Annex VI, Chapter 4: Regulations on carbon intensity for international shipping
3.3.1 Application
3.3.2 Goal-based regulations
3.3.3 Regulations 22 and 24 – EEDI
3.3.4 Regulations 23 and 25 – EEXI
3.3.5 Regulation 26 – SEEMP
3.3.6 Regulation 27 – Collection and reporting of ship fuel oil consumption data
3.3.7 Regulation 28 – Operational carbon intensity
3.4 Survey, certification and means of control
3.4.1 Introduction to MARPOL Annex VI, Chapter 2 regulations
3.4.2 Steps for the EEXI certification
3.4.3 Documentation and audits under the CII framework
3.4.4 Port state control
Chapter 4 Global implications of the EU Emissions Trading System
4.1 Overview
4.1.1 What is the EU ETS?
4.1.2 How the EU ETS functions
4.2 Phase-in timeline and scope
4.2.1 Ice-class ships
4.2.2 Excluded ships
4.3 Voyages covered by the EU ETS requirements
4.3.1 Transhipment ports for containerships
4.3.2 Exemptions
4.4 Port of call definition
4.5 Emissions calculation under the EU ETS
4.6 Updated emissions monitoring plan
4.7 Emissions reporting and verification
4.8 The Document of Compliance
4.9 Summary of key dates
4.10 The shipping company’s role and responsibility under the EU ETS 6
4.10.1 What entity is the shipping company?
4.10.2 Approaches to complying with the EU ETS obligations
4.11 Opening an account in the EU ETS Union Registry
4.11.1 Options to obtain EU allowances
4.11.2 A shipping company’s administering authority
4.12 Reporting of emissions
4.12.1 Application
4.12.2 EU MRV monitoring plans
4.12.3 Emissions to be reported
4.12.4 Shipping companies’ annual emissions reporting
4.12.5 Change of company and partial emissions reports
4.12.6 Other issues
4.13 Surrender of EU ETS allowances, enforcement and penalties 3
4.13.1 Surrender of EUAs
4.13.2 Financial penalties
4.13.3 Detention and expulsion orders
4.14 Review and revision clauses under the EU ETS
4.14.1 Implementation of EU ETS and interlinkage with EU MRV
4.14.2 Possible alignment with IMO regulations
4.15 EU ETS market
4.15.1 What are EU allowances?
4.15.2 EU ETS Union Registry
4.15.3 Account opening in the EU ETS Union Registry
4.15.4 Bilateral sale and purchase of EUAs
Chapter 5 Efficiency improving solutions
5.1 Overview
5.2 How to categorise solutions
5.2.1 Improving a ship’s EEDI, EEXI or CII value
5.3 Machinery
5.3.1 Power limitation devices and engine de-rating
5.3.2 Carbon capture
5.4 Ship hydrodynamics
5.4.1 Hull
5.4.2 Propellers and rudders
5.5 Other energy saving solutions and assisted propulsion
5.5.1 Retrofitting options
5.5.2 Propulsion assistance
5.6 Operations optimisation (best practices)
5.6.1 Autopilot adjustment and use
5.6.2 Trim optimisation
5.6.3 Ballast operations management
5.6.4 Voyage optimisation
5.6.5 Speed management
5.6.6 ‘Just in time’ arrivals
5.6.7 Hydraulic system management
5.6.8 Main engine performance optimisation
5.6.9 Steam production
5.6.10 Electrical load management
5.6.11 Digital solutions
5.7 Alternative fuels
5.7.1 Fuel lifecycle
5.7.2 Fuel quality
5.8 GHG reduction measures and underwater radiated noise
Appendices
Appendix A The IMO GHG Strategy
Appendix B IMO references and useful resources
Appendix C GHG and underwater radiated noise reduction potential of available solutions
Appendix D Checklists for managers
Appendix D1 EEXI checklist for managers
Appendix D2 CII checklist for managers
Appendix E EU references and useful resources
