IBIA Urges Improved CII Methodology for Bunker Vessels

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IBIA – The International Bunker Industry Association’s members, along with the wider shipping industry, are actively pursuing operational energy efficiency improvements as part of goals consistent with the International Maritime Organization’s (IMO) 2023 Strategy on the Reduction of Greenhouse Gas (GHG) Emissions from Ships.

With the IMO’s initial Carbon Intensity Indicator (CII) ratings applied to ships, IBIA, like others, has noted the current inadequacies of the CII methodology in appropriately reflecting the service of bunker vessels, which predominantly operate over short distances in port areas. IBIA seeks a CII methodology that is accurate, reliable, and implemented in a manner that fully reflects the intent of the IMO Strategy for its members’ bunker vessels, which play a vital role in supporting internationally trading commercial ships.

IBIA agrees with other industry associations that to achieve the IMO’s intent, the CII must be appropriate for each shipping sector. A one-size-fits-all instrument, as the CII is currently designed, has inherent flaws that result in the introduction of goals that, because of the way CII is calculated, penalize vessels undertaking short voyages.

The IMO’s Marine Environment Protection Committee (MEPC) at its 81st session in March 2024 publicly acknowledged significant concerns raised by IMO Member States and the industry, recognizing “shortcomings and unintended consequences of the CII mechanism and the general agreement that these concerns should be fully considered and addressed during the CII review process.”

IBIA supports calls to amend the current CII mechanism, especially in view of the likely strengthening of CII requirements after 2026, to avoid unintended consequences that contradict the IMO’s key principle of maintaining a “level playing field” through the regulation of international shipping.

IBIA looks forward to the commencement of the CII “data analysis stage” at MEPC 82 in September following the “data gathering stage.” To that end, IBIA has proposed, through a submission to that meeting, an amendment of the current CII methodology and formula to incorporate a short voyage correction factor that will address the service duty of bunker vessels when they support international shipping.

IBIA’s Representative to the IMO, Dr. Edmund Hughes, summarized “IBIA, as an organization with consultative status at the IMO, fully supports the effective and uniform implementation of the regulatory framework for international shipping. However, where anomalies are identified in those regulations, IBIA will provide constructive input to their further development. The IMO is undertaking a review of the Carbon Intensity Indicator (CII), and IBIA has submitted a document to MEPC 82 proposing a short voyage correction factor to ensure bunker vessels, which perform an invaluable service in supporting international shipping, are not overly penalized due to the nature of their unique service duty.”

About IBIA

The International Bunker Industry Association (IBIA) is the voice of the global bunker industry, representing the interests of bunker suppliers, traders, brokers, shipowners, port authorities, and other stakeholders. IBIA promotes improved standards, practices, and regulations within the industry, fostering collaboration and knowledge-sharing to address the challenges and opportunities facing the bunker sector.

Source IBIA

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