MEPC 76 in focus

23 June 2021

Tore Longva – Principal Consultant

Eirik Nyhus – Director, Environment
AGENDA

 Reduction of GHG emissions from ships

 Other matters decided at MEPC 76
 DNV services

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Document list comprising 19
pages
3-hour days…
64 substantial + 25 information
documents on GHG alone…

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AGENDA

 Reduction of GHG emissions from ships

 Other matters decided at MEPC 76
 DNV services

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 2018 - IMO strategy on GHG reductions
• Vision:
“IMO remains committed to reducing GHG emissions from
international shipping and, as a matter of urgency, aims to phase them
out as soon as possible in this century”

• Ambitions:
• review EEDI with the aim to strengthen requirements
• reduce the average carbon intensity (CO2 emissions per
transport work) by 40% in 2030 and 70% in 2050 compared to
2008
• reduce total GHG emissions from shipping by at least 50% in 2050
compared to 2008

• Strategy review in 2023, higher ambitions to be expected

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 MEPC 76 – GHG at a glance
Adopted regulations:
• EEDI for Existing Ships (EEXI):
retroactive one-off requirement applied to existing ships
• Enhanced SEEMP / Carbon Intensity Indicator (CII):
mandatory annual reduction targets for operational emissions
• Entry into Force Nov. 1 2022, effective as of Jan. 1 2023
Adopted guidelines:
• EEXI
• CII

Additional GHG topics;

• Proposals to catalyze strengthened R&D inconclusive  MEPC 77
• Workplan for mid- and long-term measures agreed
• Increasingly challenging discussions on Market Based Measures
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Mid- and long-term measures

• Important agreement reached on workplan for mid- / long-term

measures
• Will include consideration of Market Based Measures, but deep
splits on proposal for a USD 100/tonne CO2 bunker levy
• Research fund proposal expected to be folded into MBM discussion
• Will also include further discussion on measures to catalyze a fuel
transition, including a potential GHG footprint requirement for fuels
• Discussions will continue at the next working group (ISWG-GHG 9)
in September 2021
• The intent is to have agreed what measures to develop further by
spring 2023, in time for the review of the IMO GHG Strategy.
• Impact Assessment an integral part of the future work
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Comprehensive impact assessment
• A Comprehensive Impact Assessment had been
completed prior to MEPC 76 analyzing the impact of the
adopted measures
• MEPC agreed that the potential impacts on states did
not stand in the way of adopting the agreed regulations
• Proposals for exclusion of countries, trades or ships from
the requirements were rejected but will be kept under
review and revisited in 2026
• To cater to uncertainties and concerns raised by some
parties it was agreed to keep the Impact Assessment
under review
• The Impact Assessment process may have a real impact
on the pace of agreeing mid-/ and long-term measures
Source: MEPC 76/7/13
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EEXI

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Energy Efficiency Existing Ship Index (EEXI)
• Scope: Cargo, ro-pax and cruise ships (same as for EEDI – see list) regardless
of contract date
• Requirements:
• Attained EEXI to be calculated for ships above 400 GT
• Attained EEXI ≤ Required EEXI for ships above segment specific size
thresholds. Requirements similar to EEDI Phase 2/3, with some relief for a few
ship types
Ship type Required EEXI*
• Operators decide how to comply (Engine Power Limitation, fuel change, energy Bulk carrier ∆15-20% by size
saving devices, retrofitting etc.) Tanker ∆15-20% by size
Container ∆20-50% by size
• Application: General cargo ∆30%
• On first annual, intermediate or renewal IAPP survey or the initial IEE survey on Gas carrier ∆20-30% by size

or after 1 January 2023 LNG carrier ∆30%

Reefer ∆15%
• Survey and Certification: Combo ∆20%

Ship and company actions Verification Surveys and audits Ro-ro/ro-pax ∆5%
Ro-ro (vehicle) ∆15%
EEXI calculation and EEXI technical file First annual survey – Cruise ship ∆30%
technical file verification new IEEC issued *) Reduction from EEDI reference line

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EEXI guidelines – main decisions

• EEXI calculation guidelines

• In case an EPL is installed PME(i) should be 83% (=1/1.20) of MCRlim or 75% of MCR, whichever is lower.
• Determination of vref
• In-service speed measurement – the method will be further discussed and may be included at a later stage
• Performance margin in statistical method – the proposal will be further discussed and may be included at a later
stage
• Correction factor for ro-ro cargo vehicle – the proposal was accepted and will be included
• EEXI survey and certification guidelines
• Numerical calculations (CFD) are allowed as an alternative to tank tests
• Engine Power Limitation guidelines
• Further clarifications on the EPL system and its usage by the crew to be included

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CII

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Carbon Intensity Indicator rating

• Scope: Cargo, ro-pax and cruise ships above 5000 GT

• Requirements:
• Every year from 2023: Annually calculate and report Carbon Intensity Indicator
and rating A to E. Each ship needs to achieve rating C or better
• Enforcement:
• If rating D for 3 consecutive years or rating E: develop and implement an
approved corrective action plan as part of SEEMP to achieve rating C or better Reduction from 2019 ref.
Year (mid-point of C-rating
• Annual Statement of Compliance issued. band)

• Other elements: 2023 5%

• Review to be conducted by 1 January 2026 – particularly: 2024 7%
2025 9%
• Reduction factors for 2027-2030
2026 11 %
• Strengthened corrective actions
2027-
To be decided
• Need for enhancement of the enforcement mechanism 2030
• Carbon Intensity Code to be developed to ensure mandatory application
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Carbon Intensity Rating Scheme – the basics

of ships in 2019

Source: IMO CG informal session, 5 February 2021

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CII guidelines – main decisions
• Calculation guidelines (G1)
• Calculation guidelines to be adopted without any correction factors for certain ship types, operational profiles and/or voyages
(including no correction for ice class/operation)
• New Correction Factor guidelines (G5) to be further discussed towards MEPC 78 through the Correspondence Group. Exemptions
due to MARPOL Annex VI, Reg 3 to be taken into account. Other exemptions to be considered as corrections.
• Provision for Carbon Capture and Storage (CCS): not taken into account, the issue needs a broader discussion
• DWT to be used as Capacity metric for ro-ro cargo ships

• Reference line guidelines (G2)

• No acceptance of split reference line proposals for ro-ro cargo, vehicle, gas and LNG carriers
• No separate High Speed Craft category: should be addressed through correction factors

• Reduction factor guidelines (G3)

• Both supply and demand-based metrics will be used to monitor progress on the Carbon Intensity ambition in the GHG Strategy
• Phased reduction rate: 2020-2022: 1.0% p.a., 2023-2026: 2.0% p.a. using 2019 as base year. Further reduction rates from 2027-2030
to be decided as part of review by 1 January 2026. The same rate applies for all ship types.

• Rating guidelines (G4)

• No proposals for adjustments of rating thresholds taken into account at this stage. Some issues may be addressed through correction
factors. Potential future changes to thresholds should be based on additional data collection from DCS.

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 Negotiation of CII reduction requirements
2008 estimates based on
AIS and seaborne trade Proposed CII trajectories and resulting reduction requirements
1,6
Demand-based (CO2 per tonne-mile)
1,4
Supply-based (CO2 per capacity-mile)
Carbon intensity (2019=1)

1,2 2019 reference based on

DCS data (CO2/capacity-mile)
1
11%: 40% CI reduction from 2008 based on demand-based metric
0,8 22%: 40% CI reduction from 2008 based on supply-based metric
Agreed trajectory- 11% in 2026
(midpoint of C-rating band) 31%
0,6
achievable potential
53% Carbon intensity
0,4 reduction targets
alignment with 1.5°C target relative to 2008
0,2 Proposed reduction 75%
trajectories
0
2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055

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Enhanced SEEMP

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Enhanced SEEMP

• Scope: Cargo, ro-pax and cruise ships above 5000 GT

• Requirements:
• By 1 January 2023 the SEEMP shall additionally include:
• A description of the methodology that will be used to calculate the ship's
attained annual operational CII and the processes that will be used to report
this value to the ship's Administration;
• The required annual operational CII for the next 3 years;
• An implementation plan documenting how the required annual operational CII
will be achieved during the next 3 years; and
• A procedure for self-evaluation and improvement

• Enforcement:
• The SEEMP shall be subject to verification and company audits taking into
account Guidelines adopted by the Organization
• Confirmation of Compliance issued when SEEMP is approved.

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SEEMP guidelines – main decisions

• Proposal by IACS (verification, audits and plan of corrective actions):

supported, and will be further considered by the Correspondence Group
• Allowing for impact of corrective actions to be reflected 2-3 years later: not
taken into account
• Fleet averaging: not taken into account, but may in principle be considered
in the context of mid- / long-term measures

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Next steps:
Correspondence Group

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Correspondence Group tasks

• Interim report to MEPC 77 (November 2021) and final report to MEPC 78 (2022)
• Proposed Terms of Reference:
• Guidelines for the development of a Ship Energy Efficiency Management Plan (SEEMP)
• Guidelines on the audit and verification processes of SEEMP including for ships required to develop a
plan of corrective actions (PCA)
• Guidelines on correction factors for certain ship types, operational profiles and/or voyages for the CII
calculations (G5)
• Develop possible parameters and templates for reporting, verification and submission of data for trial
CIIs of individual ships on voluntary basis
• Guidelines on aggregation and reporting of ship’s fuel consumption data to the new Administration and / or
company in the event of change from one Administration to another and/or from one Company to another
• Update of various guidelines, e.g.: Procedures for port State control, Verification of ship fuel oil
consumption data (DCS)

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AGENDA

 Reduction of GHG emissions from ships

 Other matters decided at MEPC 76
 DNV services

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Adoption of amendments to mandatory instruments
(not including GHG regulations)
• Anti-fouling System Convention (AFS) – entry into force 1 January 2023
• Ban to apply or re-apply anti-fouling systems containing cybutryne from 1 January 2023
• All ships should remove or seal such anti-fouling systems no later than 60 months
following the last application of such anti-fouling system prior to 1 January 2023

• MARPOL Annex I – entry into force 1 November 2022

• Prohibition on use and carriage of HFO as fuel in Arctic from 1 July 2024
• For vessels complying with MARPOL Annex I, Reg. 12A (fuel oil tank protection, e.g.
double hull) the application date is 1 July 2029
• Option for waiver until 1 July 2029 for Arctic coastline States, for ships flying its flag
and operating in its waters

• MARPOL Annexes I, IV and VI – entry into force 1 November 2022

• Exemption of unmanned non-self-propelled UNSP barges from survey and certification
requirements

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Other issues
• Energy Efficiency Design Index (EEDI)
• Agreement to progress the the work on the Shaft/Engine Power Limitation concept to
apply also to the EEDI framework for new ships, with a view to finalization at MEPC
77 in November 2021
• Approved amendments to the guidelines for determining minimum propulsion power
to maintain the maneuverability of ships in adverse conditions
• Update of Unified Interpretations clarifying the dates related to EEDI Phase 2 and 3
for “new ships”, as amendments to circular MEPC.1/Circ.795/Rev.4.

• NOx Technical Code

• Approved Unified Interpretations to the NOx Technical Code 2008, clarifying
requirements for testing and certification of engines with Selective Catalytic Reduction
(SCR) systems.

• New output on underwater noise; scheduled to be completed by 2023

• Marine plastic litter; two circulars approved

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AGENDA

 Reduction of GHG emissions from ships

 Other matters decided at MEPC 76
 DNV services

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 DNV resources on decarbonization, EEXI, CII, MRV
DCS and more

Webinars Technical & Topic pages on EEXI Calc. and Advisory

Regulatory dnv.com: EEXI, CII assessment services
7 July 2021: News CII, decarb on Veracity
EEXI and CII
calculations More information in • Decarbonization
(invitation will follow) our webinar on 7 July challenge
• EEXI – design
Video recordings: compliance
• CII – operational
compliance
• and more

www.dnv.com/webinars www.dnv.com/tecreg www.dnv.com/mar-topics www.dnv.com/mar-topics

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Further DNV resources

Maritime Publications “Spotlight on

Impact (decarb, Shipping”
alternative
fuels…)

www.dnv.com/maritime/ www.dnv.com/maritime/
www.dnv.com/mi insights spotlight-on-shipping

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Thanks for joining!

www.dnv.com

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Appendix

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EEXI reference line and reduction factors
Required EEXI = (1-Reduction factor/100) × Reference line value
Reduction
Reference line value = a×b-c Ship type Size
factor
200,000 DWT and Above 15
Bulk carrier 20,000 to 200,000 DWT 20
Ship type a b c 10,000 to 20,000 DWT 0-20*
15,000 DWT and above 30
DWT of the ship where DWT≤279,000
Bulk carrier 961.79 0.477 Gas carrier 10,000 to 15,000 DWT 20
279,000 where DWT > 279,000
2,000 to 10,000 DWT 0-20*
Gas carrier 1120 DWT 0.456 200,000 DWT and Above 15
Tanker 1218.8 DWT 0.488 Tanker 20,000 to 200,000 DWT 20
4,000 to 20,000 DWT 0-20*
Container ship 174.22 DWT 0.201
200,000 DWT and above 50
General cargo ship 107.48 DWT 0.216 120,000 to 200,000 DWT 45
80,000 to 120,000 DWT 35
Refrigerated cargo carrier 227.01 DWT 0.244 Container
40,000 to 80,000 DWT 30
Combination carrier 1219 DWT 0.488 15,000 to 40,000 DWT 20
-0.7 10,000 to 15,000 DWT 0-20*
(DWT/GT) ・780.36 where
Ro-ro cargo ship 15,000 DWT and above 30
DWT/GT<0.3 DWT 0.471 General cargo
(vehicle carrier) 1812.63 where DWT/GT≥0.3 3,000 to 15,000 DWT 0-30*
5,000 DWT and above 15
DWT of the ship where DWT≤17,000 Reefer
Ro-ro cargo ship 1686.17 0.498 3,000 to 5,000 DWT 0-15*
17,000 where DWT > 17,000
20,000 DWT and above 20
DWT of the ship where DWT≤10,000 Combination carrier
Ro-ro passenger ship 902.59 0.381 4,000 to 20,000 DWT 0-20*
10,000 where DWT > 10,000
LNG carrier 2253.7 DWT 0.474 Ro-ro vehicle carrier 10,000 DWT and above 15
LNG carrier 10,000 DWT and above 30
Cruise passenger ship 2,000 DWT and above 5
170.84 GT 0.214 Ro-ro cargo ship
having non-conv. prop 1,000 to 2,000 DWT 0-5*
1,000 DWT and 5
Ro-ro passenger ship
250 to 1,000 DWT 0-5*
Cruise passenger ship having non- 85,000 GT and above 30
Source: MEPC 76/3 conventional propulsion 25,000 to 85,000 GT 0-30*
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 CII reference lines, reduction factors and rating
thresholds
Required annual operational CIIreq: (1 – Z /100) x CIIref Rating thresholds for attained CII:
A-rating: CIIatt ≤ CIIreq x d1
Reference line value CIIref: a x Capacity-c B-rating: CIIatt ≤ CIIreq x d2
C-rating: CIIatt ≤ CIIreq x d3
D-rating: CIIatt ≤ CIIreq x d4
else E-rating

Reduction factor - Z

Source: ISWG GHG 8/WP.1/Rev.1/Add.1 Source: MEPC 76/WP.4 Source: ISWG GHG 8/WP.1/Rev.1/Add.1
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Overview of applicability of regulations in MARPOL Annex VI, Ch. 4
Reg. 27: Reg. 28:
Reg. 26.1:
Reg. 22: Reg. 23: Reg. 24: Reg. 25: DCS CII rating
Ship type/characteristics Basic
Attained EEDI Attained EEXI Required EEDI Required EEXI Reg. 26.2: Reg. 26.3:
SEEMP
SEEMP Part 2 Enh. SEEMP
Bulk carrier >= 400 GT >= 400 GT >= 10000 DWT >= 10000 DWT >= 400 GT >= 5000 GT >= 5000 GT
Gas carrier >= 400 GT >= 400 GT >= 2000 DWT >= 2000 DWT >= 400 GT >= 5000 GT >= 5000 GT
Tanker >= 400 GT >= 400 GT >= 4000 DWT >= 4000 DWT >= 400 GT >= 5000 GT >= 5000 GT
Container ship >= 400 GT >= 400 GT >= 10000 DWT >= 10000 DWT >= 400 GT >= 5000 GT >= 5000 GT
Conventional propulsion

General cargo ship (except livestock carrier, barge carrier,

>= 400 GT >= 400 GT >= 3000 DWT >= 3000 DWT >= 400 GT >= 5000 GT >= 5000 GT
heavy load carrier, yacht carrier, nuclear fuel carrier)
Refrigerated cargo carrier >= 400 GT >= 400 GT >= 3000 DWT >= 3000 DWT >= 400 GT >= 5000 GT >= 5000 GT
Combination carrier >= 400 GT >= 400 GT >= 4000 DWT >= 4000 DWT >= 400 GT >= 5000 GT >= 5000 GT
Ro-ro vehicle carrier >= 400 GT >= 400 GT >= 10000 DWT >= 10000 DWT >= 400 GT >= 5000 GT >= 5000 GT
Ro-ro cargo ship >= 400 GT >= 400 GT >= 1000 DWT >= 1000 DWT >= 400 GT >= 5000 GT >= 5000 GT
>= 250+ DWT >= 250 DWT
Ro-ro passenger ship >= 400 GT >= 400 GT >= 400 GT >= 5000 GT >= 5000 GT
and >=400 GT and >=400 GT
Cruise ship >= 400 GT >= 400 GT N/A N/A >= 400 GT >= 5000 GT >= 5000 GT
Passenger ship (except ro-ro passenger and cruise) >= 400 GT N/A N/A N/A >= 400 GT >= 5000 GT N/A
Other ship with conventional propulsion, (e.g. heavy load
N/A N/A N/A N/A >= 400 GT >= 5000 GT N/A
carrier, livestock carrier, offshore)
LNG carrier with any propulsion system >= 400 GT >= 400 GT >= 10000 DWT >= 10000 DWT >= 400 GT >= 5000 GT >= 5000 GT
Cruise ship with non-conventional propulsion >= 400 GT >= 400 GT >= 25000 GT >= 25000 GT >= 400 GT >= 5000 GT >= 5000 GT
Livestock carrier, barge carrier, heavy load carrier, yacht
carrier, nuclear fuel carrier and passenger ship with non- N/A N/A N/A N/A >= 400 GT >= 5000 GT N/A
conventional propulsion, and Category A Polar Code ship
Other ship with non-conventional propulsion N/A N/A N/A N/A >= 400 GT >= 5000 GT N/A
Platforms including FPSOs and FSUs and drilling rigs N/A N/A N/A N/A N/A N/A N/A

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Source: MEPC 76/3, compiled by DNV