MEPC 78 Outcome: IMO makes progress on GHG matters, approving Med Emission Control Area

Technical guidelines for the EEXI, CII and SEEMP

MEPC 78 finalized guidelines related to the EEXI, CII and SEEMP. With these guidelines adopted, the EEXI, CII and SEEMP are ready for implementation. The EEXI technical file needs to be approved before the first annual, intermediate or renewal IAPP survey or the initial IEE survey on or after 1 January 2023. The SEEMP Part III needs to be approved and on board by 1 January 2023. The first reporting of the CII based on 2023 data is due no later than 31 March 2024..

• EEXI guidelines: Included option for in-service performance measurements.
• CII calculation guidelines (G1): The capacity parameter for ro-ro cargo ships was changed to gross tons.
• CII reference lines guidelines (G2): Reference lines for ro-ro cargo ships and ro-ro cargo (vehicle) ships were updated; the reference line for ro-ro passenger ships was split in two, with a separate line for high-speed craft (HSC) and an updated line for ro-ro passenger ships excluding HSC.
• CII rating guidelines (G4): Updates to the rating thresholds for the ship types with updated reference lines.
• Interim CII correction factor and voyage adjustment guidelines (G5): New guideline which includes correction factors and voyage adjustments for various ship types and circumstances. There was an extensive discussion on which corrections and adjustments to include. Corrections for adverse weather and extensive port and waiting time were not included at this stage and will need to be raised at the review in 2025.
• DCS verification guidelines: Provisions for verification of the CII as part of the fuel data collection system (DCS) reporting.
• SEEMP guidelines: Updated to include guidance on developing and verifying the SEEMP Part III (ship operational carbon intensity plan). There were minor adjustments to other parts of the guidelines. Port State Control guidelines: MEPC 78 requested the sub-committee on Implementation of IMO Instruments (III 8) (July 2022) to consider if failing to implement the implementation plan in SEEMP Part III is a detainable deficiency.

On matters related to greenhouse gas emissions, you made further progress with the discussions towards the revision of the Initial GHG Strategy, as initiated during MEPC 77 and building on the successful outcomes of the eleventh and twelfth sessions of the Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG)

…said IMO Sec-Gen in his closing remarks.

Exhaust Gas Cleaning Systems (EGCS)

Guidelines for risk and impact assessment of the discharge water from EGCS were approved. The guidelines provide information on the recommended methodology for risk and impact assessment that member states should follow when considering local or regional regulations concerning EGCS discharge water.

Guidance regarding the delivery of EGCS residues to port reception facilities was approved. These best practises are intended to assist both ship operators and port states in assuring the proper management and disposal of EGCS residues and stored discharge water form EGCS into port reception facilities.

Reporting of flashpoint in the Bunker Delivery Note (BDN)

Following the approval of amendments to SOLAS Chapter II-2 by MSC 105 in relation to the flashpoint of oil fuel, amendments to Appendix V of MARPOL Annex VI (Information to be included in the BDN) were approved subject to adoption at MEPC 79. The following new item has been added to the BDN: “Flashpoint (°C) or a statement that flashpoint has been measured at or above 70°C”.

Mid and long-term measures to reduce GHG emissions

There was an extensive discussion on potential mid and long-term measures at the intersessional meeting held two weeks prior to MEPC 78. At this meeting, proposals for various market-based measures were discussed:

• A levy system based on absolute well-to-wake GHG emissions. The GHG price is determined by the IMO.
• A levy system based on CII performance, where ships with CII performance below a benchmark pay a contribution per tonne CO2, and ships with performance above the benchmark receive a reward. The contribution is determined by the IMO, while the reward depends on the level of achievement of the fleet.
• A levy system based on absolute tank-to-wake CO2 emissions where the revenues are partly used to provide a direct rebate to zero-emission vessels. The CO2 price and rebate are determined by the IMO.
• An emissions cap-and-trade system, similar to the EU ETS, where the well-to-wake GHG emission level is set by the IMO and allowances are auctioned out. The carbon price is then determined by the market.

Identification and protection of special areas, ECAs and PSSAs.

MEPC 78 considered and approved a proposal for a Sulphur Emission Control Area (SECA) to be established in the Mediterranean Sea. The proposal is subject for adoption at MEPC 79 in December of this year, and is expected to take effect from 1 July 2025. The requirement will be the same as for other SECAs, mandating the use of fuel oil with a sulphur content of 0.10% or of an EGCS.

EXPLORE MORE AT DNV’S OVERVIEW OF MEPC 78