Page 39 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - MARTIOS 2023
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CII: AN OPEN DISCUSSION



 DECIPHERING          WHY SEEMP AND COLLABORATION




 THE COMPLEXITIES     ARE KEY TO GETTING CII RIGHT




 OF THE                                       There will always be teething issues   and E ratings, namely corrective action




                                              when a new regulation comes into  plans – which must also be implemented
                                              force. At BIMCO, however, we have  via the SEEMP. 
                                              rarely experienced a regulation that   The ship is obliged to document in the
                                              has thrown the industry into as much   SEEMP which concrete measures will
                                              turmoil as the CII regulation. However,   be used to bring it back to the mid-point
                                              if shipowners fix their eyes on five let-  rating of C (the target CII or required
                                              ters: SEEMP, and work in close collabo-  CII mentioned above). Since all ships
                                              ration with charterers, the industry may   can supposedly achieve a “C” rating by
                                              be off to a good start despite a regula-  applying the approved measures, com-
                                              tory framework that is complicated and   pliance lies in the application of the
 From 1 January 2023, it has become mandatory for all ships to calculate their attained Energy Efficiency Existing Ship Index   imperfect.    implementation and corrective action
 (EEXI) to measure their energy efficiency and to initiate the data collection for reporting their annual operational carbon   About two months ago, the CII reg-  plans in the SEEMP, and not in the
 intensity indicator (CII) and CII rating.    ulation entered into force. While the   rating itself. 
 The CII determines the annual reduction factor needed to continuously improve the ship’s operational carbon intensity   framework may change over time from a
 within a specific rating level. However, implementing the IMO indicator as a short-term measure to achieve decarbonisation   mathematical perspective, the intent of   Managing CII takes two: the ship-
 goals has raised questions, with many stakeholders of the international shipping community already calling for modifica-  the regulation is here to stay. Indeed, in   owner and the charterer  
 tions to the index.                          its current form, the most efficient ship   Another common misunderstanding is
 In the following pages, industry experts discuss their first conclusions from the implementation of the CII, propose solu-  out there is one that is always empty  that responsibility for compliance lies
 tions for its improvement,  and also refer to how the BIMCO clause affects relations between shipowners and charterers.  and never calls at a port, but just roams   with the charterer. It is correct that the
                                              the oceans at eco-speed. While such  CII framework is an operational regula-
                                              a scenario is unlikely for commercial  tion and that any commercial decision
                                              reasons, it would give the ship the best   on the ship’s operation will directly
                                              possible CII rating. In addition, actual   affect its rating. However, it is the Inter-
                                              commercial utilisation of the ship would   national Safety Management (ISM)
                                              worsen its rating.                company that is responsible for a ship’s
                                                                                regulatory CII compliance.  
                                              The misunderstanding aiming for “C”    In the commercial world, without close
                                              While much focus is on the ratings (A,  co-operation and commitment from the
                                              B, C, D and E), and particularly on the   operators of the ship, managing the task
                                              mid-point of the letter C, all eyes should   to improve a ship’s CII will be a difficult,
                                              in fact be on the five letters: SEEMP.   even impossible, task. 
                                              The Ship Energy Efficiency Management   The CII framework will fundamentally
                                              Plan is the primary compliance tool in   change the way shipowners and charter-
                                              the framework. The required implemen-  ers collaborate. There will be no busi-
                                              tation plan documents how a ship will   ness as usual if a ship is to achieve the
                                              achieve the required CII for the next  target CII year after year. Century old
                                              three years – with measures, timelines,   practices and standards are therefore
                                              responsible personnel. It also deliber-  up for a significant revisit. 
                                              ates any impediments related to the   
                                              measures listed.                  The CII rating: labelling a trade or a
                                              It is a common misunderstanding that a   ship? 
                                              ship must achieve a C rating to be com-  Another issue that we often encounter
                                              pliant. The fact is that any rating, A, B,   when we advise our members about the
            by Lars Robert Pedersen,          C, D or E, is in fact a compliant rating.   CII framework is that a low rating sup-
            BIMCO Deputy Secretary General    There are however consequences of D   posedly equals an inferior ship, a ship


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