MEPC 76 Outcomes and

Industry Impact

June 23, 2021

© 2020
2021 American Bureau of Shipping. All rights reserved
Presenters

Jan Otto de Kat Maria Polakis Jesse Lashbrook

Senior
Director, Engineer, Director,
Global Global Strategic
Sustainability Sustainability Marketing

2 | MEPC 76 Outcomes and Industry Impact

Safety Moment

3 | MEPC 76 Outcomes and Industry Impact

MEPC 76 Agenda
Main Topics
• Adoption of Amendments
• Reduction of GHG Emissions from Ships
- Comprehensive impact assessment
- Carbon intensity of existing ships
- International Maritime Research and Development Board (IMRB)
- Mid- and long-term measures
• Air Pollution Prevention
• Energy Efficiency of Ships
• Pollution Prevention and Response
• Ballast Water
• Work Program of the Committee and Subsidiary Bodies

4 | MEPC 76 Outcomes and Industry Impact

© Avigator Fortuner/Shutterstock
Impact of COVID-19 on the IMO
• MEPC 76 held by remote session
• Decisions by correspondence prior to meeting
• Virtual meeting
• Commentary by correspondence after meeting
• Meetings to continue remotely until
further notice
5 | MEPC 76 Outcomes and Industry Impact
• Several important items postponed to MEPC 77
• All BWM discussion topics
• Action Plan on Marine Plastic Litter
• Guidelines on Reduction of Underwater Noise
• Pollution, prevention and response agenda items
• Pending items for carbon intensity regulations
© Surapol Usanakul/Shutterstock
Adoption of Amendments Entry into force date
for amendments to
• Draft amendments to MARPOL Annex VI MARPOL instruments –
including EEXI and CII November 1, 2022
• Draft amendments to MARPOL Annex I to prohibit
the use and carriage for use as fuel of heavy fuel
oil (HFO) by ships in Arctic waters
• Draft amendments to MARPOL Annex I and IV
concerning the exemption of unmanned
non-self-propelled (UNSP) barges from survey
and certification requirements
• Draft amendments to the AFS Convention to
include controls on the biocide cybutryne
- EIF date: 1 JAN. 2023

6 | MEPC 76 Outcomes and Industry Impact

© Aerial-motion/Shutterstock
 Reduction of
GHG Emissions
from Ships

7 | MEPC 76 Outcomes and Industry Impact

© anucha sirivisansuwan/Shutterstock
Reduction of GHG Emissions
Outcome of ISWG-GHG 8
• Report by ISWG-GHG 8, MEPC 76/WP.4
- Finalization of the draft EEXI calculation guidelines
- Finalization of the draft EEXI survey and certification guidelines
- Finalization of the draft EPL/ShaPoLi guidelines
- Finalization of the draft guidelines supporting the
CII Framework
- Finalization of the draft CII Guidelines (calculation method,
reduction factors, reference lines, CII rating)
- Further consideration to finalize SEEMP Guidelines
- Update of other existing guidelines, procedures and guidance
- Consolidate technical guidelines into mandatory Carbon
Intensity Code
- Draft TOR for ISWG-GHG 9, CG on Carbon Intensity Reduction
(interim report to MEPC 77 and final report to MEPC 78)
Source: IMO

8 | MEPC 76 Outcomes and Industry Impact

EEXI Draft Guidelines
• Calculation (Adopted by MEPC.332(76))
- PME where EPL/ShaPoLi is installed
- EEXI reference speed, (VREF)
- Ro-Ro Cargo (Vehicle) correction
• Survey and Certification (Adopted by MEPC.333(76))
- Use of numerical methods for estimation of VREF
- Standardization of numerical calculations – future
work needed
• EPL/ShaPoLi Systems (Adopted by MEPC.334(76))
- Proposals to facilitate access to power reserve override by the
crew were agreed (MEPC 76/7/16, RINA and Nautical
Institute)
- Group noted the need to safeguard the safety of ships and
crews
- Clarification needed on fixed power limits
© Photomarine/Shutterstock

9 | MEPC 76 Outcomes and Industry Impact

EEXI Power, PME
• EEXI Calculation using 75% MCR
- Main engine is permanently derated
- New rating (SMCR) is indicated on main engine name plate
- NOx Technical File and EIAPP amended accordingly
- Non-overridable power limitation and technical controls
• New rating (SMCR) is indicated on main engine Source: www.mandieselturbo.com
name plate and/or
• Revised EIAPP (and accompanying NOx
Technical File)

• EEXI Calculation using 83% MCRlim

- Overridable power limitation
- Access via passcode (electronic engines)
- Limitation set with screw/seal (mechanically Source: IMO

controlled engines)
- Release requires permission by ship’s master or OICNW
- Approved Onboard Management Manual (OMM)
- 2021 Guidelines on Shaft/Engine Power limitation (IMO MEPC)
10 | MEPC 76 Outcomes and Industry Impact
EEXI Compliance – PME @ 75% vs 83% MCRlim

Reduction of Main Engine Power for EEXI Compliance

Applying PME @ Applying PME @

Vessel Type Size YOB
75% MCRlim 83% MCRlim

Tanker 113k DWT 2008 36.2% 42.4%

Tanker 158k DWT 2017 2.8% 12.1%

Tanker 321k DWT 2011 27.8% 34.7%

Bulk Carrier 82k DWT 2013 7.7% 16.6%

Bulk Carrier 179k DWT 2013 34.7% 41.0%

Container Ship 3.5kTEU 2007 37.2% 43.3%

Container Ship 10kTEU 2011 29.6% 36.4%

11 | MEPC 76 Outcomes and Industry Impact

 CII Guidelines
• CII Calculation Methodology (G1) (Adopted by MEPC.335(76))
• CII Reference Line Guidelines (G2) (Adopted by MEPC.336(76))
• CII Reduction Factor Guidelines, (G3) (Adopted by MEPC.337(76))
• CII Rating Guidelines (G4) (Adopted by MEPC.338(76))
• Correction Factors and Voyage Exclusions, CII Correction Factor
Guidelines (G5) (to be developed)
• Proposals for fleet level compliance to be considered as part of mid-
and long-term measures (deferred)

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CII Reduction Factor Guidelines (G3)

Earlier Proposals' Approaches Based on Data by Submitted by ISWG-GHG 8 to MEPC 76

the Fourth GHG Study
Year Annual Reduction Rate Phases

2020 1%
2021 1% 1
2022 1%
2023 2%
2024 2%
2
2025 2%
2026 2%
2027
2028
3
2029
2030

CII annual reduction rates for Phase 3 are to be developed and

strengthened considering impacts on States, particularly developing
countries, including SIDs and LDCs.

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Impact of Approved CII ratings 2023-2030
• Expected performance of existing ships
• Assume 2% reduction in Phase 3 (2027 – 2030)

MEPC 76

Vessel 2023 2024 2025 2026 2027* 2028* 2029* 2030*

Tanker D D D D D D E E
Tanker D D E E E E E E
Tanker A A A A B B B B
Tanker B B B C C C C C

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Impact of Approved CII ratings 2023-2030
• Expected performance of an existing fleet

Carbon Intensity Indicator

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Impact Assessment of Short-term Measures Approved at MEPC 75
• The Committee approved the comprehensive
Impact Assessment study in general
- Some remaining uncertainties, data gaps
- Varying impacts on States
- Special concern: LDCs, SIDS
- Highest impacts under High GHG reduction (CII) scenario,
especially for SIDS; least impact in relation to only EEXI
- Economic and social impact of the pandemic
• Some countries would likely require support to
mitigate the increased maritime logistics costs
Ahmet Ihsan Ariturk © 123RF

• Proposal for inclusion of a waiver in the regulations

did not receive sufficient support
• Disproportionate negative impacts – lack of proper
definition, further consideration needed
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IMRB and IMRF
• Revised proposal: MEPC 76/7/7
- International Maritime Research and Development
Board, with International Maritime Research Fund
under IMO auspices
- Addresses concerns raised at MEPC 75
• Supported by various member states
• Other member states raised issues/concerns
- Governance
- IPR
- Equitable allocation of research results and funding
- Legal
- Parallels with MBM
• Outcome: this subject could not be concluded at
MEPC 76; invite further proposals at MEPC 77,
noting concerns from MEPC 76 © JaiFotomania/Shutterstock

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Mid- and Long-term Measures
• Discussion split into three categories:
- Group 1: Proposal for a work plan for the development of mid- and long-term measures
- Group 2: Other proposals on the development of mid- and long-term measures and supporting
working arrangements
- Group 3: Proposal on the establishment of a universal mandatory greenhouse gas levy
• Outcome
- 1. The work plan consists of three main phases:
• Phase I – Collation and initial consideration of proposals for measures
(Time period: Spring 2021 to Spring 2022);
• Phase II – Assessment and selection of measures to further develop
(Time period: Spring 2022 to Spring 2023); and
• Phase III – Development of measures to be finalized with agreed target dates
(Timeline: Target date(s) to be agreed in conjunction with the IMO Strategy on reduction of
GHG emissions from ships)
- 2. Relevant MEPC 76 submissions to be considered by ISWG-GHG 10
- 3. Diverging views, not sufficient support for approving a levy now, but to be considered further at
MEPC 77, noting concerns from MEPC 76
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 Air Pollution
Prevention and
Energy Efficiency

19 | MEPC 75 Outcomes and Industry Implications

© elwynn/Shutterstock
Air Pollution Prevention and Energy Efficiency
• Correspondence Group on Air Pollution Prevention and
Energy Efficiency
- Example for FO supply, bunker license
- Transport work proxies for offshore vessels and cruise passenger
ships
- Methodology for analysis of fuel consumption data
- Shaft/Engine power limitation concept
- Revision of the Minimum Propulsion Power Guidelines
- EEDI calculation method
- Clarification of EEDI Phase 2 and 3 dates
- Clarification of ship types for EEDI calculation
• Report of fuel oil consumption data submitted to the IMO
Ship Fuel Oil Consumption Database in GISIS
- Annual Report for year 2019 © Jose Lledo /
© Shutterstock
donvictorio / Shutterstock
Source: IMO

20 | MEPC 76 Outcomes and Industry Impact

 Ballast Water
and Anti-fouling
Systems

21 | MEPC 76 Outcomes and Industry Impacts

© Khrushchev Georgy/Shutterstock
AFS Convention – Ban on Use of Cybutryne
• Adopted at MEPC 76 by MEPC.331(76)
• Applying/re-applying of AFS containing cybutryne
will be prohibited from January 1, 2023
- Cybutryne acts as a biocide, but may leach into
surrounding waters and harm aquatic life
• Ships which have an AFS containing cybutryne in
the external coating layer must either remove or
apply a sealant which prevents leaching
- To be done at the next scheduled renewal of the AFS
after January 1, 2023, but no later than 60 months
from the last AFS application
• New form of IAFS Certificate to note this prohibition

© anucha sirivisansuwan/Shutterstock

22 | MEPC 76 Outcomes and Industry Impact

 Items for
MEPC 77

23 | MEPC 76 Outcomes and Industry Impact

UK Hydrographic Office
Postponed Items for MEPC 77 (November 2021)
• Numerous submissions related to Ballast Water
Management systems (Agenda Item 4)
• Overview of data on fuel oil quality and availability
(Agenda Item 5)
• Numerous submissions related to clarifying the
calculation of EEDI (Agenda Item 6)
• Numerous submissions related to biofuels, wind
propulsion, and the measurement and reduction of
carbon intensity in international shipping
(Agenda Item 7)
• Action Plan on Marine Plastic Litter (Agenda Item 8)
• Numerous submissions related to the Guidelines for
Exhaust Gas Cleaning Systems (Agenda Item 9)
• Type-approval schemes for anti-fouling paints
(Agenda Item 13) © nektofadeev/Shutterstock

24 | MEPC 76 Outcomes and Industry Impact

Items for MEPC 77- Carbon Intensity Guidelines
▪ Correspondence Group on Carbon Intensity Reduction
▪ Terms of Reference
• Draft CII guidelines (G5) on correction factors and voyage exclusions
• Guidelines for the development of a Ship Energy Efficiency Management
Plan (SEEMP)
• Audit and verification processes of SEEMP
• Voluntary reporting of data to support CII framework
• Ship fuel consumption reporting in the event of a flag or company transfer
• Update existing guidelines
• 2017 Guidelines for administration verification of ship fuel oil consumption data
(resolution MEPC.292(71))
• 2017 Guidelines for the development and management of the IMO Ship Fuel
Oil Consumption Database (resolution MEPC.293(71))
• Procedure on submission of data to the IMO data collection system of fuel
oil consumption of ships from a State not Party to MARPOL Annex VI
(MEPC.1/Circ.871)
• Procedures for Port State Control, 2019 (resolution A.1138(31))
▪ Interim Report to MEPC 77 / Final Report to MEPC 78 © Sky Cinema/Shutterstock

25 | MEPC 76 Outcomes and Industry Impact

Intersessional Working Group on GHG (9th and 10th Sessions)
▪ ISWG-GHG 9 to be scheduled for 15-17 September 2021
• Concrete proposals for the uptake of alternative low-carbon and zero-carbon
fuels including life-cycle GHG/carbon intensity guidelines for all relevant types of
fuels and incentive schemes, as appropriate
• Proposals to reduce methane slip and emissions of Volatile Organic Compounds
(VOCs)
▪ ISWG-GHG 10 to be scheduled for 18-22 October 2021
• The interim report by the Correspondence Group on Carbon Intensity Reduction
prior to submitting to MEPC 77
• The scope of and timeline for development of a mandatory carbon intensity code
• Proposals on how to keep the impacts of the short-term measure under review
and how to undertake a lessons-learned exercise of the comprehensive impact
assessment of the short-term measure
• Mid-term GHG reduction measures in the context of Phase I of the workplan for
the development of mid- and long-term measures
• Submit Report to MEPC 77 © fotohunter/Shutterstock

26 | MEPC 76 Outcomes and Industry Impact

Work Program of MEPC and Subsidiary Bodies
• New agenda item was agreed at MEPC 76: Underwater Noise
• Include in the current agenda of the Committee "Review of the 2014 Guidelines
for the reduction of underwater noise from commercial shipping to address
adverse impacts on marine life (MEPC.1/Circ.833)
and identification of next steps"
- Target completion year: 2023
- Coordination by SDC Sub-Committee, to be included in the provisional agenda of SDC 8

27 | MEPC 76 Outcomes and Industry Impact

© Denys Yelmanov/Shutterstock
Key Takeaways
Amendments to Future Amendments to
Guidelines for EEXI and AFS Convention Guidelines on Underwater
CII Implementation Related to Cybutryne Noise

1 2 3 4 5 6

Adoption of MARPOL
Guidance for Reporting Ban on HFO in
Annex VI Amendments
EEDI Values to IMO Arctic Waters
for EEXI and
CII Implementation

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Sustainability Leadership

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Questions

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sustainability@eagle.org

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