CARBON INTENSITY INDICATOR (CII)

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WHAT IS CARBON INTENSITY?

In the shipping industry, carbon intensity is the measure of a ship’s GHG emissions relative to the amount of cargo carried over a certain distance. This metric is preferable to total carbon emissions as a measure of a vessel’s environmental impact because it controls for periods of inactivity. During the COVID-19 pandemic, for example, total vessel GHG emissions briefly declined as more ships remained docked; this, of course, was due to a dip in supply chain productivity, not because of more efficient shipping. Carbon intensity, on the other hand, takes economic activity into account, providing a more realistic measure of the shipping industry’s progress toward a more sustainable future.

OVERVIEW OF THE CARBON INTENSITY INDICATOR (CII):

Regulators and other stakeholders in the maritime industry are intensifying their efforts to cut greenhouse gas (GHG) emissions from shipping. The IMO, as the international regulatory body, set a Greenhouse Gas Reduction Strategy in 2018. One of the goals is to achieve a reduction in carbon intensity of 40% by 2030 compared to the 2008 level. The target is to reduce GHG emissions by improving vessels' energy efficiency as well as introducing new technologies and low or zero-carbon fuels.

In June 2021, the IMO adopted extensive new CO2 regulations applicable to existing ships. The Energy Efficiency Existing Ship Index (EEXI) addressing the technical efficiency of ships, the Carbon Intensity Indicator (CII) rating scheme addressing the operational efficiency, and the enhanced Ship Energy Efficiency Management Plan (SEEMP) addressing the management system.

From 2023, the CII requirements will take effect for all cargo, RoPax and cruise vessels above 5,000 GT and trading internationally.

The CII measures how efficiently a ship transports goods or passengers and is given in grams of CO2 emitted per cargo-carrying capacity and nautical mile. The ship is then given an annual rating ranging from A to E, whereby the rating thresholds will become increasingly stringent towards 2030.

While the EEXI is a one-time certification targeting design parameters, the CII addresses the actual emissions in operation.

A ship that is rated D for three consecutive years, or E in one year (e.g. those with the highest carbon intensity) will be required to submit a “corrective action plan” that outlines how the vessel will be brought to a minimum C rating.

By Er.Shanmugham Magesh

Pondicherry Maritime Academy

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