By Nicholas Makar, Senior Vice President, Maritime Administration / Regulatory Affairs of International Registries, Inc.
Despite decades of improvement and being a relatively environmentally friendly mode of transportation, enhancing shipping's environmental performance is a high priority. Further work is necessary to keep pace with the United Nations' Sustainable Development Goals and decarbonize this sector. This is in line with the International Maritime Organization's (IMO's) roadmap on reduction of Greenhouse Gas (GHG) emissions from ships.
Air emission controls under the International Convention for the Prevention of Pollution from Ships (MARPOL) Annex VI have been successfully implemented over the last 15 years since discussions on air emissions were formally initiated at the IMO in the 1980s. Now, with the 0.50 percent fuel oil sulphur content standard in rear-view, maintaining vigilance over potential fuel oil quality and safety issues remains paramount.
Similarly, the current technical design requirements for new ships, known as the Energy Efficiency Design Index (EEDI), were developed as a product of discussions initiated when MARPOL Annex VI was adopted in 1997, in light of the relationship between Carbon Dioxide (CO2) and other marine pollutants.
The industry is now looking onward to a new horizon. Continuing in its work to develop policies and practices related to the reduction of GHG emissions from ships, and in accordance with the IMO Initial GHG Strategy, various new measures are being developed to build on the progress and successes of the existing energy efficiency regulatory framework.
The following brief examination of future regulatory developments is aimed at environmental initiatives and associated trends specifically related to controlling air emissions. These include amendments to regulations that are presently under development or have not yet been formally adopted according to treaty amendment procedures, but are expected to impact the shipping industry in the near future.
Future milestones:
Baltic Sea and North Sea ECA
As a result of amendments adopted in 2017, the existing Baltic Sea and North Sea areas, which are presently designated ECAs for more stringent Sulphur Oxide (SOx) emission controls, have now been designated for additional NOx control. Marine diesel engines installed on ships constructed on or after January 1, 2021 will be required to comply with the most stringent weighted NOx emission limits specified under MARPOL Annex VI (Tier III) when operating in these designated areas.
Fuel oil sampling and testing protocols
Following on from efforts at IMO to address the consistent implementation of the 0.50 percent fuel oil sulphur content standard, draft amendments to enhance the fuel oil sampling and testing aspects of MARPOL Annex VI were approved at the last session of the IMO Marine Environment Protection Committee (MEPC). The draft amendments now recognize fuel oil “in-use” and “on-board” sampling for the purpose of verifying compliance with regulatory limits. These amendments were expected to have been adopted at the 75th session of the MEPC, which was originally scheduled for the first week of April 2020. However, with the postponement of IMO meetings due to COVID-19 restrictions, it is not clear exactly when these revisions will enter into force. Due to the tacit amendment procedures of MARPOL, a minimum of 16 months is required between adoption of amendments and their subsequent entry into force to allow parties to the convention an acceptance period and time to incorporate the new binding provisions into national laws.
Safety related aspects associated with the use of fuel oil
Another product of the work on consistent implementation of the 0.50 percent fuel oil sulphur content standard relates to potential safety concerns associated with the use of new fuel blends. The IMO Maritime Safety Committee (MSC) is presently developing mandatory measures to enhance ship safety when using fuel oil. Flashpoint has been prioritized as a critical parameter. However, other fuel oil safety parameters are to be addressed. In the meantime, interim recommendations have been provided (Resolution MSC.465(101)) encouraging Member States to notify the IMO of confirmed instances where fuel oil was delivered exceeding the International Convention for the Safety of Life at Sea (SOLAS) requirements for minimum flashpoint. Subsequent amendments to SOLAS to mandate reporting and establish verification protocols for fuel oil safety related parameters are presently under development. When completed, the amendments are intended to complement provisions under MARPOL Annex VI addressing fuel oil quality.
EEDI
Although EEDI regulations have been in force since 2013, the Initial GHG Strategy calls for strengthening of EEDI requirements for new ships. To this end, changes have been approved to advance the starting year for EEDI Phase 3 requirements from 2025 to 2022 for gas carriers, liquid natural gas (LNG) carriers, containerships, general cargo ships, and cruise passenger ships having non-conventional propulsion. The required EEDI reduction rates for containerships were also revised according to a step-wise scale based on dead weight tons (DWT). The existing EEDI Phase 3 starting year and reduction rates are otherwise retained for all other applicable ship types and sizes. Additionally, IMO Member States and organizations are working to consider possible introduction of further phases with associated time periods and reduction rates.
Initial GHG Strategy
Good progress has been made towards developing concrete proposals for short-term measures as envisaged in the Initial GHG Strategy. A combination of technical and operational approaches are under consideration for the near term. The technical short-term measures will be goal-based, meaning that the method for meeting requirements will not be prescribed, and ships can utilize the most appropriate approach to improve performance. The operational measures under consideration essentially build on the existing framework of optimization measures, such as by mandating ship specific energy efficiency management practices and requiring periodic auditing of those procedures. To meet the timelines of the Initial GHG Strategy, short-term measures should be finalized and agreed by 2023. However, recognizing the need for early action to achieve a reduction in the carbon intensity of international shipping by at least 40 percent by 2030 (and 70 percent by 2050), regulatory amendments need to be finalized before the end of this year to enter into force before 2023, subject to resumption of the IMO meeting schedule.
Work on candidate mid- and long-term measures has also progressed, with a focus on the effective uptake of alternative low-carbon and zero-carbon fuels, including the development of life cycle GHG/carbon intensity guidelines. Progress in this area will be critical to meet the Initial GHG Strategy levels of ambition to reduce the total annual GHG emission from international shipping by at least 50 percent by 2050, and the eventual decarbonization of the sector this century.
Regional Requirements
Investments and decisions will need to be made as early as possible to meet the aspirational goals set in front of the industry. Regulatory certainty of future requirements is essential to facilitate such planning. Additionally, a cohesive and meaningful regulatory framework is required to avoid commercial distortions and facilitate effective implementation. For this reason, the regulatory regimes developed under the non-discriminatory principles of IMO instruments are ideally suited for controlling air emissions from international shipping. Additionally, measures developed under the Initial GHG Strategy must also be guided by differing national circumstances to avoid disproportionate adverse impacts on some countries.
As policy makers at IMO strive to develop regulations in this context, progress must also be demonstrated to avoid proliferation of unilateral restrictions by national authorities, which may not be compatible with ultimately agreed measures. It should be cautioned that patchwork systems of directives based on precautionary principles complicates compliance efforts, creates additional burdens for ships and their crews, and may work against the spirit of the international treaty regimes delicately negotiated by IMO Member States. On the other hand, the benefits of clear and effective policies in this regard will see market barriers removed, raise awareness throughout the industry towards improving energy management, while maintaining the safety and effectiveness of the world fleet.
International Registries, Inc. and its affiliates (IRI) provide administrative and technical support to the Republic of the Marshall Islands (RMI) Maritime and Corporate Registries. IRI has been administering maritime and corporate programs and involved in flag State administration since 1948.
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