MEPC 80 Summary &

Decarbonisation

Lloyd’s Register

September 2023
Topics covered at MEPC 80

Greenhouse Gas Reductions Energy Efficiency Pollution Prevention

Ballast Water Special Areas, ECAs, PSSA Marine Plastic Pellets and Fishing Gear

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Greenhouse Gas Reductions Energy Efficiency

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2023 IMO GHG Strategy
MEPC.377(80) 2023 IMO Strategy for the reduction of Green House Gases from Ships

Ambitions
Carbon Intensity Zero or near-zero
Reductions via improved emission fuels or energy Net zero GHG emissions from
energy efficiency sources shipping

New ships: strengthen EEDI 5% (striving for 10%) uptake By or around 2050, accounting
Existing ships: 40% average by 2030 for national circumstances
CII  by 2030

Net zero GHG emissions indicative checkpoints (compared to 2008)

20%  (striving for 30%) by 2030
70%  (striving for 80%) by 2040
Short term Mid term Long term

Basket of measures
Measures in place Pending review of the 2023
EEDI, EEXI, CII, SEEMP 1. A technical element GHG strategy
2. An economic element

For review by 1 Jan 2026 For adoption in 2025 and EIF 2027 Due Autumn 2028
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MEPC 80 developments: Short-term measures
Pending discussion

Review and implementation

EEDI/
EEXI
SEEMP Data gathering
(by Autumn 2024)

CII
Data analysis
(Autumn 2024 – Spring 2025)
Enforcement Data needs

Application of LCA Convention & Guidelines review

Effectiveness Guidelines (Spring 2025)
Consequential
Impact on states amendments
Review complete
(1 Jan 2026)
Application Port
Enhance Strengthen Amends to New CII Correction
of CII to waiting Incentives?
DCS? EEDI? CoC? metrics? factors?
ship types? times?

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Mid- and Long-term measures

Adopted at MEPC 80, subject to 5

yearly review. 2023 IMO
GHG Strategy
Next review and update 2028.

Basket of measures to be
Technical Economic
discussed. Will be an economic
Measures Measures
and a technical component.

What the economic and technical Carbon Goal Based

component looks like is tbc. Intensity Fuel Standard Levy? Feebate?
(anticipated) 2027. Index (CII) (GFS)

How can LR help? LCA

LCA Guidelines
Guidelines
(Adopted at MEPC 80)
Navigate an uncertain future

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Mid-term measures Timeline
Milestones

Comprehensive impact
Target dates assessment (CIA) of the Development of candidate Other milestones
basket of candidate mid- mid-term measures
term measures
MEPC 80 Initiate Phase III of the Work Plan
(Summer 2023) Initiation of CIA on the development of mid-
term measures
MEPC 81 Interim report Finalisation of basket of
(Spring 2024) measures
MEPC 82 Finalised report
(Autumn 2024)
MEPC 83 Review of the short- term measure to
(Spring 2025) Approval of measures be completed by 1 January 2026
Extraordinary MEPC
(Autumn 2025)
Adoption of measures
16 months after Entry into force of measures
adoption (2027)
MEPC 86 Initiate the review of the 2023 IMO
(Summer 2027) GHG Strategy
Finalisation of the review of the 2023
IMO GHG Strategy with a view to
MEPC 88
adoption of the 2028 IMO GHG
(Autumn 2028)
Strategy
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LCA Guidelines: Production Pathways
MEPC.376(80) Guidelines on Life Cycle GHG Intensity of Marine Fuels (LCA guidelines)

Production pathways Well to tank

• Feedstock extraction
• Land use change
Sustainability • Feedstock processing/transformation
• Feedstock and fuel transport to
bunkering/storage
Fuel Life Cycle Label • Emissions savings from soil carbon accumulation
Tank to Wake
Default emission values • Slipped fuel
• Leaked or vented fuel from the system
• Share of GHG in fuel components
Actual emission values • CO2, CH4 & N2O Emissions from
combustion/oxidation by ship
• GWP100 of CO2, CH4 & N2O
• Inclusion of emissions from biomass
Verification and certification • Emission credits from biomass growth
• Emission credit from CO2 captured

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LCA Guidelines: Sustainability
MEPC.376(80) Guidelines on Life Cycle GHG Intensity of Marine Fuels (LCA guidelines)

Production pathways Sustainability of the production of marine fuels

to be assessed on a life cycle basis considering
aspects such as:
Sustainability
• GHG
Fuel Life Cycle Label • Carbon Source
• Source of electricity/energy for production
• Land use change (direct and indirect)
Default emission values

Actual emission values

Verification and certification

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LCA Guidelines: Fuel Life Cycle Label
MEPC.376(80) Guidelines on Life Cycle GHG Intensity of Marine Fuels (LCA guidelines)

Production pathways A technical tool to collect and convey

information related to the life cycle assessment
of fuels and energy carriers. Consists of 5 parts:
Sustainability
• Part A – fuel in use
Fuel Life Cycle Label • Part B – carbon credits of carbon source
• Part C – TtW GHG emission factors
• Part D – WtW GHG emission factors
Default emission values • Part E – sustainability performance

Actual emission values

Verification and certification

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LCA Guidelines: Default and Actual emission values
MEPC.376(80) Guidelines on Life Cycle GHG Intensity of Marine Fuels (LCA guidelines)

Production pathways To continue to be developed on WtT and TtW

basis.
Sustainability Actual emission values to be used to
demonstrate superior GHG performance
Fuel Life Cycle Label compared to default values, subject to third-
party verification and certification

Default emission values

Actual emission values

Verification and certification

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LCA Guidelines: Verification and certification
MEPC.376(80) Guidelines on Life Cycle GHG Intensity of Marine Fuels (LCA guidelines)

Production pathways Emission factors and Fuel Lifecycle Label subject to

verification & certification. Guidance needed to be
developed still.
Sustainability
FLL certification is to be built from existing
Fuel Life Cycle Label standards. Standards to be recognised by MEPC.

Default emission values

Actual emission values

Verification and certification

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Carbon Capture
Pending discussion Proposals include

• Include CO2 capture in the IMO GHG regulatory framework, including

EEDI, EEXI and CII
• Provide a level playing field and cost-effective opportunity for
decarbonisation of the shipping industry
• Remove regulatory barriers to innovative technology

Different opinions on the best way forward.

Should CCS be included in LCA guidelines first?

• Will now be considered at ISWG-GHG 16

(April 2024?? Immediately prior to MEPC 81)
• Considered as a low-priority item.

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Updates to MARPOL Annex VI

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MEPC 80 developments: Short-term measures
Agreed

Revision to IMO DCS

Amendments to MARPOL Annex VI reg. 27 and Appendix IX

Implementing TEU miles as sole metric for containerships

• Incorporate total transport work in DCS using actual tonne-mile,
TEU-mile and/or passenger mile data.
• Applicable to ships to under reg. 28 of MARPOL Annex VI.

Increase the granularity of reported fuel oil consumption data

collection
• Allow non-anonymised data of a company’s ships to be made
public at the request of the company

Expected for adoption at MEPC 81

and EIF 2025

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MEPC 80 developments: Short-term measures
Agreed and adopted

EEXI / EEDI Calculations

MEPC.375(80) Amendments to the 2021 MEPC.374(80) Amendments to the 2022

Guidelines on the Shaft/Engine Power Guidelines on survey and certification of the
limitation system to comply with the EEXI Energy Efficiency Design Index (EEDI)
requirements and use of a power reserve (MEPC.365(79)
(MEPC.335(76))

1. Supporting evidence and records do not need to • Clarifying that "Filling rate" used in the EEDI
be submitted to the IMO calculations refers to the "Loading limit" in the
2. Clarify the reporting period for Administration IGF and/or IGC Codes.
3. New format for reporting:
• overridable EPL /ShaPoLi activation,
• use of power reserve
• reactivation of EPL /ShaPoLi
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Impacts beyond MARPOL Annex VI

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Ballast Water Management

BWM.2/Circ.79 • Building on the Experience Building Phase of the BWM Convention

• 14 areas identified to be reviewed and addressed
Convention Review Plan • Any agreed amendments to EIF in 2026

• Temporary storage of sewage /treated grey water in ballast tanks.

• Time & complexity restrained discussion.
• Sent to MEPC 81.

• Type Approval of modified approved BWMS.

• Proposals to be sent to MEPC 81

• Ports with challenging water quality

• To be concluded by MEPC 81.

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 Biofouling
Agreed and adopted

MEPC.378(80) 2023 Guidelines for the control and management of ships' biofouling to minimise the
transfer of invasive aquatic species.

Anti-fouling system installation

Cleaning and Maintenance
and maintenance

Management plans and record books Contingency Action Plans

Inspection

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Biofuels and biofuel blends
Agreed and adopted

Certified by an international scheme

MEPC.1/Circ.905 Interim
guidance on the use of biofuels
under regulations 26, 27 and 28 of WtW GHG  at least 65% compared to a fossil MGO of 94gCO2e/MJ
MARPOL Annex VI

To be used in lieu of further Emission Conversion factor (Cf) cannot be < 0.

development of the LCA guidelines For blends Cf should be based on weighted average.

Cf = WtW emission x Lower calorific value

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Electronic Bunker Delivery Notes
Agreed and adopted

MEPC.1/Circ.795/Rev.8 Unified
Interpretations to MARPOL Annex VI -
Regulations 18.5 and 18.6 of MARPOL
Annex VI, concerning electronic bunker
delivery notes

This UI confirms that BDNs are acceptable

in either physical or electronic form
providing they meet the requirements of
MARPOL Annex VI.

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Underwater Radiated Noise
Pending discussion MEPC.1/Circ.906

• Revised Guidelines for the reduction of underwater radiated noise from

shipping to address adverse impacts on marine life (MEPC.1/Circ.833)

MEPC.1/Circ.907

• Guidelines for underwater radiated noise reduction in Inuit Nunaat and

the Arctic.

Expert Workshop

• Discussing the relationship between energy efficiency and

underwater noise – September 2023.

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Shipping facing a tiered future?

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The transition is a technical, commercial and strategic challenge

LR has made large investments across the industry to support clients navigate this transition

Ship
TOP-DOWN APPROACH: Design
Value
STRATEGIC POSITIONING Chain Finance
FLEET

Ship
& FUEL
Build
Fleet Charterer Fuel STRATEGY
Replacement Ambition Readiness Operate

Alternative Production
Fuel Value
Mitigate risk and position companies for future success Chain Distribution

Storage

Voyage
Vessel-level Bunkering
Trading DD cycle and
Emissions
Patterns CAPEX budgets OPERATIONAL
Modelling
MEASURES Cargo Upstream Cargo
Value Supply Chain
BOTTOM-UP APPROACH: TECHNOLOGY Chain
VESSEL MODELLING IMPLEMENTATION Cargo loading

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 Techno-Commercial Modelling Outputs
Developing vessel-specific pathways to ensure and deliver compliance

2.2 IMO Target Trajectory Newbuild ZEV

SPEED OPTIMISATION
Speed Optimisation Existing Avg. Speed
2.0 EETS & SPEED EETs & Speed Optimisation Newbuild Avg. Speed
2024: EETs OPTIMISATION
Drop-in Biofuel
1.8 fitted at
drydock
2033: final full
1.6 year of operation Replacement vessel moves
Vessel falls off trajectory significantly below IMO
1.4 in 2027 even with speed emissions reduction
reduction & EETs DROP-IN trajectory
CII [gCO2/t.Nm]

BIOFUEL
1.2

1.0
ZERO CARBON
VESSEL
0.8
20.0

Average Vessel Speed [knts]

SPEED OPTIMISATION
0.6 15.3 15.5 15.5 15.5 15.5 15.5 15.5 15.5 15.5 15.5 15.5 15.5 15.5 15.5 15.5 15.5 15.5
14.3 15.0
13.1 12.8 13.4 13.0 12.7 13.4
12.5 12.0 12.0 12.0 12.0
0.4 10.0

0.2 5.0

0.0 0.0
2022

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2024

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Commercial in confidence. Do not distribute without further consent from Lloyd’s Register
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Adoption of Alternate fuels - Factors
Regulatory Development Technology readiness
EEXI, SEEMP & EEDI Phase 3 Carbon Lifecycle emissions
CII Tankers, Gas carrier, Ro-Ro Intensity Code standards for fuels

2022 2023 2025 2030 Post 2030

EEDI Phase 3 Operational
Methane Emissions
EEDI Phase 4 Future EEXI Phases
Container, Bulker, LNG

Fuel Availability/Vessel’s operational profile Energy Cost 2800 m3

2400 m3

AMMONIA

METHANOL
1600 m3

1000 m3

LNG
MGO
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 Future-proofing vessels to maximise earning potential
Modelling the transition from the perspective of both the owner and the charterer
Total cost of operations
Failing to future-proof a vessel could cut 10% off the asset value at
5 years old and lose millions of dollars of earnings METHANOL MGO DF

Cost of a poor choice LPG Base Gas Price

MR Tanker Capesize
- LNG X-DF Low Gas Price

-2.0
LNG X-DF High Gas Price
-4.0
$ Million

-6.0
HFO + scrubber
-8.0
- 100 200 300 400 500
-10.0

-12.0 Fuel bill 20-y EU ETS tax 20-y

FuelEU bill 20-y Global CO2 tax $ Million
Lost Earnings (Conservative Case)
Methane (GWP 20) Operating Cost of DF engines
Accelerated Depreciation CAPEX

Accelerated depreciation is calculated by shortening lifespan to 15 years. Assumptions based on a VLCC, using different gas price assumptions, as well as assuming the
Lost earnings is using 25% of the differential between eco and non-eco vessel earnings as imposition of a global carbon tax
per Clarksons
LR’s energy transition strategy projects

1 2 3 4 5
Options Strategic
Future Fuel
Baselining & As-is Gap Analysis & Roadmap &
Readiness
Assessment Assessment Materiality Detailed
Assessment
Assessment Action Plan

Where do we stand Where do we What are our What are the most When and how
today? need to be? feasible long-term suitable emissions do we do it?
fuel options? reduction measures?
Trusted Advisors supporting you through the transition
LR’s energy transition strategy capabilities
Authority of maritime regulations
We are shaping the industry’s future by leading
and participating in various global bodies. Our
experts have a deep and extensive
understanding of current and future regulatory
requirements
Extensive data and research on
energy saving devices
LR has access to granular ship performance data
which enables us to accurately benchmark vessel
performance and assess the impact of energy
saving retrofits.
Leader in Technical assurance
We are a leading international provider of
classification, performance and assurance services to
the marine industry, helping evaluate new
technologies and assessing their effectiveness,
performance and safety.
Marrying technical excellence with
commercial insight
LR has developed a business advisory capability that
translates LR's technical excellence into commercial
and strategic implications, helping businesses to
successfully navigate the transition.
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Resources

Key resources to support your

journey to Decarbonisation
Resources: LR.org/MEPC80

MEPC 80 resource hub MEPC 80 Summary report Fuel for Thought reports Zero Carbon Fuel Monitor

Joint study into ammonia Onboard carbon capture CII Calculator Speak to our experts
safety utilisation and storage

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Any Questions?

Thank You!!

Brijesh Tewari,
Lloyd’s Register Singapore
E: brijesh.tewari@lr.org
M: +65 9296 2771

Visit LR.org/MEPC80