IMO MEPC 82: Key Updates on EEXI, CII, and Fuel Regulations

Oct 23,2024 Back
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The International Maritime Organization’s Marine Environment Protection Committee (IMO MEPC) held its 82nd session from September 30 to October 4, 2024, in London. This meeting was a precursor to a more comprehensive session planned for April 2025, which will review the Carbon Intensity Indicator (CII), Ship Energy Efficiency Management Plan (SEEMP), and Energy Efficiency Existing Ship Index (EEXI) ahead of new greenhouse gas (GHG) measures set to take effect in 2027.

Key Discussions

During this session, no major decisions were made, but important topics were addressed:

  • Fuel Intensity Standard (GFI): Inspired by the EU’s FuelEU, this standard may allow fleets to pool resources, rewarding compliant ship owners and penalizing those who fall short.

  • Global Carbon Tax: Supported by Western countries for a levy of $100-150 per tonne of carbon emissions, but opposed by China, Brazil, and Argentina. The U.S. has not taken a clear position.

Risks of Overlapping Legislation

There are concerns about overlapping regulations between the EU and international laws on fuel and carbon emissions. As the IMO introduces its measures, there’s a risk that the EU could phase out its own regulations, leading to confusion in the late 2020s and early 2030s.

Review Process

The IMO plans a two-phase review of CII, SEEMP, and EEXI:

  • Phase 1 (before January 1, 2026): Focus on determining CII reduction factors for 2027-2030 and improving the SEEMP framework.

  • Phase 2 (after January 1, 2026): Address more complex factors like adverse weather and life-cycle GHG emissions, while refining the CII enforcement mechanisms.

New Emission Control Areas (ECAs)

Two new ECAs were introduced:

  • Canadian Arctic ECA: NOx Tier III compliance required for new ships over 130kW from January 1, 2025, with a sulphur limit of 0.10% m/m starting March 1, 2027.

  • Norwegian Sea ECA: Similar NOx requirements and sulphur limits apply.

HFO Ban in Arctic Waters

A ban on heavy fuel oil (HFO) will be enforced for older ships starting July 1, 2024, while compliant vessels are exempt until July 1, 2029.

These discussions at MEPC 82 emphasize the ongoing efforts to create effective environmental regulations in the maritime industry as the focus on reducing GHG emissions increases.