INTERCARGO Calls on IMO for Review of Carbon Intensity Indicator at MEPC 82

INTERCARGO issued a press release which calls for the reevaluation of the Carbon Intensity Indicator (CII) framework, requesting adjustments be made to reflect the operational realities of vessels, while proposing changes to the implementation.

The International Association of Dry Cargo Shipowners, INTERCARGO is the latest association to show concern regarding the CII formula. They called for a review at the Marine Environment Protection Committee (MEPC) meeting, which took place in London at the end of October.

After analysing data gathered from over 5,600 bulk carriers, INTERCARGO raised a number of key concerns with the existing CII system, which are as follows:

1. Idle time impact. INTERCARGO expresses a clear correlation between increased idle time and poor CII ratings. This is particularly apparent for smaller sized vessels. It also claims that this idle time is beyond the control of ship operators.
2. Perverse incentives. The current CII framework encourages ships to keep their main engines running unnecessarily to improve their CII rating, which increases overall emissions.
3. Inconsistent efficiency indicators. The CII does not accurately reflect the true efficiency of a vessel, as those with E ratings will commonly have a lower average CO2 emission rate than those rated A to D.
4. Size disparities. Smaller bulkers in the Handysize, Supramax and Ultramax segments often show a higher percentage of D and E ratings compared to larger vessels.

Following these findings, INTERCARGO proposed that the CII should accommodate further adjustments:

1. Rather than reflect the efficiency of factors outside the control of a ship, review and adjust the CII to reflect a vessel’s true energy efficiency.
2. Introduce a system that doesn’t encourage behaviour that improves ratings at the cost of higher total emissions, but incentivises overall GHG emission reduction.
3. Beginning with solutions based on existing data, consider a multi-phased approach to improve the CII that becomes more refined as additional data becomes available.

Vice-Chairman of INTERCARGO’s Technical Committee, Mr Dimitris Monioudis, stated: 

“Our proposals are grounded in a comprehensive examination of verified IMO Data Collection System data from 2022. This wasn't just a cursory review – it involved meticulous analysis of over 5,600 bulk carriers, conducted in collaboration with three major classification societies – ABS, Bureau Veritas, and DNV. This level of scrutiny provides a robust foundation for our recommendations and underscores the urgent need for a review of the current CII system”.

INTERCARGO Chairman, Dimitris Fafalios added: 

“The current CII framework, while well-intentioned, may be leading us down a path which contradicts our ultimate goal of reducing overall emissions. We’re seeing situations where ships might actually increase their total emissions to improve their CII rating. This is clearly not the outcome we’re aiming for so it is crucial that we refine this system to ensure it truly incentivises energy efficiency and emissions reduction across our industry”.

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