The ocean shipping industry is just days away from the debut of the Carbon Intensity Indicator (CII), a new regulation meant to combat global warming. Even as an initial baby step, the CII is not inspiring confidence in the future decarbonization of shipping.
The new regulation seeks to lower carbon emissions by having container ships, tankers, bulkers, car carriers and other vessels operate more efficiently. It is a product of the United Nations’ International Maritime Organization (IMO) that has been in the works for years and debated ad nauseam within shipping circles.
Those outside of shipping who rely on the world’s vessels to transport their goods may scratch their heads when they learn of the strange brew the IMO has concocted. CII’s complexities, unintended consequences and weak enforcement call to mind the phrase “too many cooks in the kitchen.”
And implementation, set to begin Jan. 1, just got even more complicated.
For the CII regulation to work properly, there must be agreement between shipowners and charterers — the companies that lease ships from owners — on how the emissions-curbing responsibility is split. “Cooperation is key,” emphasized shipping insurer Gard.
To continue reading this article...
Already have an account? Sign In
Create a Free Account
No payment required
Chirs Gonsoulin
Looks like more regulations that aren’t needed. Reducing carbon footprint is all fine and dandy, but the cost most often outweighs the benefit, and this is no exception.
Leland Blair Nicholson
I wish the Main Stream Media would report on this.
This regulation will show up in all of our prices worldwide as “inflation” when it is really another CO2 tax. That might be OK with many people, but it should be clear to all that this is being done.
It is even more horrible that the CII measure isn’t even logically calculated to incentivize efficiency! The “law of unintended consequences” due to the simplistic formula shows a total lack of intelligent analysis by the CII creators. Dividing by empty capacity vs. cargo weight delivered! Ships circling while empty to raise their scores? Less efficient ships on the longer voyages?
If they allow shippers to use fleet averages, maybe someone will start building lightweight super-tankers out of fiberglass to be endlessly moved around in optimal routes cargo-less to jack up CII numbers.
Thank you for this article. You have been very level-headed in your article — especially given the absurdity involved in this new regulation.
Julia
Good one