The highlights of the 79th session of the IMO’s Marine Environment Protection Committee (MEPC 79) include the discussions on the revision of the IMO GHG Strategy scheduled for 2023 as well as future technical and market-based measures.
Below you can find the most relevant updates related to the journey to decarbonization in shipping.
Revision of the IMO GHG Strategy
There was an extensive exchange of views on the scheduled revision of the IMO GHG Strategy. MEPC 79 revised the Guidance on process and methodological elements for the conduct of comprehensive impact assessments (MEPC.1/Circ.885).
There was limited convergence between member states on the vision and levels of GHG reduction ambitions in the strategy. The main divergence in views is on those calling for full decarbonization by 2050, and those calling for further assessments on feasibility to achieve such an ambition and the potential impacts on states before such a decision can be made. There also remains a divergence of views on the necessity of intermediate GHG reduction targets being set for 2030 and 2040.
The MEPC will adhere to the established workplan on this matter and adopt the revised strategy at MEPC 80 in July 2023. Further discussions will take place at Working Group meetings to be held from 20 to 24 March, and during the week prior to MEPC 80 in July 2023.
Mid and long-term measures to reduce GHG emissions
There was an extensive discussion on potential mid and long-term measures at a Working Group meeting held the week prior to MEPC 79. At this meeting, proposals for various measures were discussed and there was an increased support for a basket of measures combining technical and economical elements. On market-based measures there was a convergence towards a levy scheme, imposing a set price on well-to-wake or tank-to-wake GHG emissions, possibly in combination with a rebate system where the revenues are partly provided back to vessels to cover the price gap between fossil and low or zero-carbon fuels.
Additionally, there was significant support for a technical measure in the form of a well-to-wake GHG intensity fuel standard.
Further discussions will take place at Working Group meetings to be held from 20 to 24 March, and during the week prior to MEPC 80 in July 2023. The decision on which measures to develop into regulations will be made at MEPC 80.
Adoption of amendments to mandatory instruments (excerpt)
MARPOL Annex VI – information to be submitted to the IMO Ship Fuel Oil Consumption Database
Amendments to MARPOL Annex VI, Appendix IX were adopted to include the attained and required Carbon Intensity Indicator (CII) values, the CII rating and attained Energy Efficiency Design Index for existing ships (EEXI) in the required information to be submitted to the IMO Ship Fuel Oil Consumption Database. The amendments will enter into force on 1 May 2024. However, administrations are invited to consider early application from 1 January 2024 to ensure that the CII data for 2023 is reported to the IMO.
Unified Interpretations
MEPC 79 approved a clarification on the Unified Interpretation of Appendix IX of MARPOL Annex VI, that the DCS reporting includes boil-off gases (BOG) used for propulsion or operational needs such as in a boiler, or burnt in a Gas Combustion Unit (GCU) for cargo tank pressure control, or for other operational purposes.
MEPC 79 approved an extension of the Unified Interpretation of Regulation 18.3 of MARPOL Annex VI related to NOx emissions when using biofuels, that it should also be applicable for fuels with a synthetic fuel content of up to 30%. In principle, such fuels fall under the definition of Marine Fuel Oil derived from petroleum refining (Regulation 18.3.1) and no further NOx testing is required.
MEPC 79 approved Unified Interpretations of Regulation 26 of MARPOL Annex VI related to the Ship Energy Efficiency Management Plan (SEEMP). A new ship should comply with the requirement at the time of delivery. Furthermore, for ships delivered on 1 October or later, the following year should be the first year of the three-year implementation plan, and the attained CII for the remaining part of the year of delivery should not be included when the determining whether the ship should develop a corrective action plan under Regulation 28.
MEPC 79 approved a Unified Interpretation of Regulation 28 of MARPOL Annex VI related to the plan for corrective action to achieve the required CII . The corrective action plan should plan for how to achieve the required CII on the second year after the reporting year that resulted in the third consecutive D-rating or an E-rating.
Other topics
Correction factors for the Carbon Intensity Indicator (CII)
Proposals for additional CII correction factors were deferred to MEPC 80. Considering the diverging views expressed, it is likely that decisions to add further correction factors will only be taken at the review point in 2025.
Revision of the Data Collection System (DCS)
In addition to the amendments to the DCS adopted at MEPC 79, there was a discussion on adding further elements, including mandatory cargo data reporting. The discussions will continue at future meetings of the MEPC.
On-board CO2 capture
A brief discussion was held on provisions for considering on-board CO2 capture and storage in GHG regulations under MARPOL Annex VI. Due to time constraints, the issue was deferred to MEPC 80.
Lifecycle GHG/carbon intensity for marine fuels
A brief discussion was held on developing guidelines on life cycle GHG/carbon intensity. The correspondence group will continue its work on the guidelines, and a first version is expected to be finalized at MEPC 80 in July 2023.
Energy Efficiency Design Index (EEDI)
MEPC 79 revised the EEDI calculation guidelines to include a CO2 conversion factor for ethane, a reference to the updated ITCC guidelines, and a clarification that in case of a ship with multiple load line certificates, the maximum certified summer draft should be used when determining the deadweight. MEPC 79 also discussed applying the shaft and engine power limitation concepts to the EEDI and agreed that, in principle, these concepts should be added in a future revision.
A possible Phase 4 of the EEDI was discussed, with several member states advocating for developing it into an energy-based index by removing the CO2 conversion factor, while others wanted to also include methane (CH4) and nitrous oxides (N2O). However, no decisions were taken, and further discussions were deferred to later sessions of the Committee.
Recommendations
DNV recommends to complete the preparations for compliance with the upcoming EEXI , SEEMP and CII requirements. Since 1 January 2023, an approved SEEMP Part III needs to be on board and the necessary data to calculate the CII and relevant correction factors must be monitored and reported. By the first survey after 1 January, the EEXI Technical File needs to be approved.
(Content source: DNV Technical & Regulatory News, 16 Dec 2022: "IMO Update: Marine Environment Protection Committee - MEPC 79")
