Greenhouse gas (GHG) emissions, particularly in the form of CO2 from fuels, are a pressing topic in most industries, including the maritime industry. With decarbonization now a priority in shipping, many new initiatives and regulations have either been implemented or are currently under development.
What is the IMO Strategy on Reduction of GHG Emissions from Ships?
The International Maritime Organization (IMO) is the United Nations specialized agency responsible for safe, secure, and efficient shipping, and preventing pollution from ships. It aims to reduce and phase out GHG emissions from international shipping as soon as possible. In July 2023, the IMO adopted the IMO strategy on Reduction of GHG Emissions from Ships.
The IMO Data Collection System (DCS) consists of requirements for ships to record and report their fuel oil consumption. To manage the increasing number of reporting requirements, SERTICA VRS offers a comprehensive solution covering all current standard reports. You even have the flexibility to create your own reports.
The goals of the IMO GHG Strategy
The IMO GHG Strategy is a framework that outlines the vision for reducing GHG emissions in international shipping. It represents a set of ambitions to phase out emissions as soon as possible.
The IMO Strategy’s decarbonization ambitions
The levels of ambitions for decarbonization in international shipping outlined in the IMO GHG Strategy are:
- Reduce the carbon intensity of the ship by improving the energy efficiency of new ships.
- Reduce CO2 emissions per transport work, across international shipping by 40% by 2030, compared to 2008.
- Increase the use of zero GHG emission technologies, fuels, and energy sources. These should represent 5%-10% of the energy by 2030.
- Reach net-zero GHG emissions by or around 2050.
Indicative checkpoints to reach net-zero GHG emissions from international shipping
To reach net-zero GHG emissions, the IMO GHG Strategy presents these indicative checkpoints:
- By 2030, the total annual GHG emissions from international shipping should be reduced by 20-30%.
- By 2040, the total annual GHG emissions from international shipping should be reduced by 70-80%.
How does the IMO Strategy on Reduction of GHG Emissions affect shipping?
In January 2019, it became a requirement for ships of 5,000 GT and above to collect consumption data. Many technical and economic aspects of the IMO GHG Strategy are still under negotiation. The negotiations are expected to be completed by 2025 and implemented by 2027. However, these regulatory requirements have already entered into effect:
- Energy Efficiency Design Index (EEDI): Require new ships to be designed and built for improved energy efficiency.
- Energy Efficiency Existing Ship Index (EEXI): Require existing ships above 400 GT to calculate their attained EEXI, which reflects the ship’s technical or design efficiency.
- Data Collection System (DCS): Require ships above 5000 GT to annually record and report their fuel oil consumption.
- Carbon Intensity Indicator (CII): Require ships above 5000 GT to annually assess their annual emission of CO2 in operations.
- Ship Energy Efficiency Management Plan (SEEMP): An operational mechanism with best practices for fuel-efficient ship operation to improve energy efficiency.
Track consumption and emissions with Decarbonization Reports
Get an overview of when the different measures entered into effect:
Mandatory Measures for Decarbonization in Shipping
It is mandatory for all ships to calculate their Energy Efficiency Existing Ship Index (EEXI) and operational carbon intensity indicator (CII). This requires ships to improve their energy efficiency in short term to reduce GHG emissions. The effectiveness of the EEXI and CII is set to be reviewed on the 1st of January 2026 at the latest.
Energy Efficiency Existing Ship Index
The EEXI is a one-time certification assessing the energy efficiency of a ship’s technical design. Ships of 400 GT or more must calculate their EEXI based on different values set for their type and size unless they are exempted from their Flag Administration.
The EEXI is a one-time certification for existing ships, whereas the CII rating is an ongoing measure of operational efficiency.
Carbon Intensity Rating for Ships
The CII rating reflects the operational energy efficiency of the ship. Based on a ship’s CII, its carbon intensity is rated on an A to E scale. These ratings indicate the following performance level:
- A = Major Superior
- B = Minor Superior
- C = Moderate
- D = Minor Inferior
- E = Inferior
Ships are required to have a minimum rating of C in order not to incur corrective actions. If ships are rated D for three years or E for one year, they are required to submit a corrective action plan to improve to at least a C rating. You can assess the carbon efficiency of your vessels with Carbon Intensity Indicator Reports, which provide you with an accurate and comprehensive picture of a ship’s carbon emissions.
Stay ahead of the CII rating with the CII Simulator in SERTICA VRS, where you can simulate and predict your rating:
How to reduce CO2 emissions from ships
The IMO recommends several measures for shipping companies to reduce emissions such as:
- Hull cleaning to reduce drag
- Alternative fuels
- Reduce electric consumption
- Optimize propellers
- Speed optimization
- Weather routing
However, assessing where and to what extent these measures should be implemented can be difficult. This is where high-quality data becomes invaluable. It enables you to identify areas for improvement, monitor performance, and track fuel consumption, so you can make informed decisions.
Yet, ensuring reliable data can be complex. Potential risks such as data gaps, insufficient data management, and undetected errors can harm the quality of your data. These issues often stem from:
- Using a mix of spreadsheets, paper, and software for reporting.
- Reporting systems that cannot adapt to new requirements.
- Ashore departments struggle to ensure the correctness of vessel-reported data.
- Inconsistent monitoring of emissions and CII ratings.
To overcome these challenges, automatic data collection can minimize effort, provide consistent monitoring of data, reduce human errors, and ensure all requirements are met.
Manage GHG Emissions in Shipping with digital reporting
Managing GHG emissions and reducing CO2 requires consistent and accurate data collection, streamlined reporting, and actionable insights. SERTICA VRS streamlines these processes with real-time monitoring, automated data management, and customizable reporting tools.
Watch how simple it is to fill out a report in SERTICA VRS:
SERTICA VRS helps you ensure regulatory compliance with:
- Real-time monitoring of key metrics like fuel consumption and speed.
- Presentation and analysis of data with PowerBI integration.
- Based on ship type the report templates contain all the requirements foreseen by currently regulations in place.
- Sequenced reports to ensure consistent and accurate data collection.
- Customized reports and dashboards to get the exact data you require.
- Easy access and submission of reports with reliable data transfer between ship and shore.
SERTICA VRS supports compliance with the IMO GHG Strategy by enabling shipping companies to easily identify areas to reduce GHG emissions. It simplifies reporting processes by giving you a clear overview of your data, letting you know what data is needed, and when regulatory requirements are met.
