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Intercargo slams CII ‘significant flaws’

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Intercargo said it does not support the IMO’s Carbon Intensity Indicator (CII) framework as a benchmark for greenhouse gas emissions reductions in its current state.

The association, which represents dry cargo shipowners, said it supports the ambition of net zero shipping by 2050 and laid out its preferred mechanisms for reaching the goal.

CII should not be used as a benchmark for the medium-term measures under discussion at IMO, said Intercargo, as too many factors outside of a vessel’s control have a large impact on its CII rating. The examples given were 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,” said Intercargo.

As a result, the association believes CII in its current form will not deliver equitable, transparent and non-distorting emissions’ reductions.

“While [we are] generally supportive of the operational short-term measure, there are significant flaws that need to be addressed in order to make CII fit for purpose,” said Intercargo.

As the IMO’s greenhouse gas strategy is reviewed, Intercargo said its preferred route forward was a flat-rate contribution per tonne of CO2 emitted on a well-to-wake basis and the formation of an International Maritime Sustainability Funding and Reward (IMSF&R) mechanism.

The first measure would be based on the IMO’s fuel emissions’ Life-Cycle Assessment (LCA) currently being refined at IMO, while the second would allow ships using eligible alternative fuels to be rewarded.

“The responsibility for decarbonisation cannot be placed solely on the shoulders of the ship operator at the end of the line – it is a challenge that must be dealt with holistically by the entire shipping industry,” said Intercargo.

“It is essential that appropriate policies are included in the Revision of the International Maritime Organization (IMO) GHG Strategy to ensure that green fuels are secured as well as the necessary infrastructure to ensure availability and bunkering in ports around the world. Unfortunately, these aspects are not sufficiently discussed and addressed despite their critical role.”

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