Net zero shipping by 2050 can only be achieved through the provision of alternative fuels, says INTERCARGO, while noting that the Carbon Intensity Indicator (CII) in its current format has ‘significant flaws’ that need to be addressed to make it fit for purpose.
Setting out its position on the International Maritime Organization’s (IMO) decarbonisation targets and measures, INTERCARGO, which represents the dry bulk sector, says that policies should be included in the revision of the IMO’s greenhouse gas (GHG) strategy to ensure that green fuels are secured along with the necessary bunkering infrastructure at global ports. ‘Unfortunately, these aspects are not sufficiently discussed and addressed despite their critical role,’ it says.
In terms of medium-term measures, INTERCARGO is supportive of a flat rate contribution per tonne of CO2 emitted on a Tank-to-Wake (TtW) basis - and subject to the outcome of the ongoing discussions at IMO on fuel emissions’ Life-Cycle Assessment (LCA) – this should be combined with an International Maritime Sustainability Funding and Reward (IMSF&R) mechanism where ships of 5,000 GT and above will make an annual contribution per tonne of CO2.
Under such a scheme only ships that use ‘eligible alternative fuels’ would receive a reward for CO2 emissions prevented.
On the CII, which will come into play from 1 January next year, INTERCARGO says its current framework should not be used as a benchmark for the IMO’s medium-term measures. The industry body says that CII as it stands ‘cannot be used to achieve the desired decarbonisation goals as under real life operating conditions it will not deliver equitable, transparent and non-distorting emissions.’
It notes that a number of factors can have a significant adverse impact on a vessel's CII rating, ‘most of which are outside the vessel’s control.’ It points to adverse weather, voyage distance, port waiting times, port infrastructure, and charterers orders.
‘Paradoxically when considering voyage distances and port waiting times, vessels with longer travel distances can produce more emissions but have a better CII rating when compared to vessels travelling shorter distances and producing less emissions,’ says INTERCARGO.