Elephant in the Room
This week the IMO agreed short term measures to address climate change. For many, it was felt that these measures lacked the ambition needed to reach the IMO’s goal of reducing total GHG emissions by 50% and carbon emissions by 70% by 2050. The short-term measures will see even stricter newbuilding designs adopted via the energy efficiency design index (EEDI), the Ship Energy Efficiency Management Plan (SEEMP) and new measures called the Energy Existing Ship Design Index (EEXI) and Carbon Intensity Indicator (CII). Combined, these measures are intended to improve vessel design and operational efficiency. Logically this makes sense; extract every drop of efficiency out of the existing fleet and ensure newbuild efficiency continues to improve. However, under IMO protocol the new rules will not enter into force until late 2022 at the earliest. What is really needed is clarity on what the IMO’s medium and long-term measures will look like to give owners the confidence to invest in the next generation of vessels. However, for this the industry will need to be patient with the IMO pledging to address these measures before 2023, with entry into force not expected until the second half of the decade.
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The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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