The race towards net zero emissions of greenhouse gases will have a profound impact on shipping and maritime. Emission-related data has become a currency for trade to continue in commercial maritime activity.
The current measurements of your ship's emissions, as indicated by the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII), enforced since 1st January 2023, have direct implications for your trading and operations.
In addition, the European Commission extended the scope of its Emissions Trading System (EU ETS) to include emissions from shipping, which started on 1st January 2024. Companies must surrender allowances for all emissions that occur on voyages between ports within the EU and whilst ships are at berth at EU ports regardless if the ships fly an EU flag or whether the shipowner is incorporated in the EU. The directive will be effective 2025.
You must act now in order to understand what measures need apply and manage your vessel's emission.
Data Monitoring Platform and Performance Management
Spark is an intuitive application for energy efficiency that provides key information to all layers in the organization, including the captain.
Spark provides standardized data and analytics across your fleet on GHG emissions through noon report data and sensor data extracted onboard vessels. This extension of Spark is exceptionally important for vessels trading in EU waters.
Under the upcoming EU Emissions Trading System (EU ETS) shipping companies must surrender allowances for their vessels emissions under the EU's "cap and trade" emissions trading system. For any vessel that does not meet the annual limits, a penalty will be charged.
Spark tracks emissions data and provides a cost estimate for the price to pay greenhouse gas emissions impact.
Performance Management services
We are ready to assist you in translating data into actions that results to reduction in operational expenses and environmental footprint. Our team ensures that you are aligned with the stricter environmental regulations coming into force from 2023 while keeping your sustainability focus with charterers, investors, banks and consumers.
The Performance Management team works hand-in-hand with your technical team and crew onboard to ensure that data is converted into actions onboard.
General FAQs Regarding Ship Energy Efficiency
1) What is energy efficiency in shipping?
Energy efficiency in shipping refers to the efforts made to reduce the amount of CO2 emissions from ships, minimizing environmental impact. This is crucial for addressing climate change and reducing the shipping industry's contribution to greenhouse gas emissions. Strategies for improving energy efficiency encompass technological advancements, such as hydrodynamic hull designs and waste heat recovery systems, as well as operational practices, such as voyage optimization and hull maintenance.
2) What is a Ship Energy Efficiency Management Plan?
The Ship Energy Efficiency Management Plan (SEEMP) is a mandatory plan required for all ships of 400 gross tonnage (GT) and above engaged in international voyages. Vessel to develop and keep on board an SEEMP, as set out in the guidelines adopted by the IMO. The SEEMP may form part of the ship’s safety management system and is subject to audit and verification. The SEEMP is a structured, practical tool that incorporates best practices for fuel-efficient ship operation to improve the energy efficiency of the ships and manage their environmental performance. It outlines the steps that ship operators must take to monitor, document and improve energy efficiency performance. The effective implementation of the SEEMP can deliver significant economic, environmental, and operational benefits to ship operators and shipping companies, positioning them as responsible and forward-thinking players in the maritime industry.
3) How should the energy efficiency of a ship be monitored?
The ship's energy efficiency should be monitored using a combination of methods, including fuel oil consumption data (FOCR) collection, shipboard energy monitoring systems (SEMS), performance benchmarking, energy audits, and remote monitoring. These methods can provide valuable insights into the ship's energy efficiency performance and help identify areas for improvement.
4) What are the types of energy efficiency measures for ships?
There are four main types of energy efficiency measures for ships:
- Energy Efficiency Design Index (EEDI): This index measures the energy efficiency of ship design. The EEDI is calculated using a formula that considers the ship's type, size, and power. A lower EEDI value indicates a more energy-efficient ship design.
- Energy Efficiency Existing Ship Index (EEXI): This index measures the energy efficiency of existing ships of 400 gross tonnage and above. The EEXI is calculated using a formula similar to the EEDI, but it also takes into account the ship's age and any modifications made to its design.
- Energy Efficiency Operational Indicator (EEOI): This index measures the operational efficiency of a ship. It is calculated based on the actual ship's fuel consumption, cargo carried, and distance travelled during a specific period.
- Carbon Intensity Indicator (CII): This index reflects the operational energy efficiency of ships in a comparable manner to a fuel efficiency standard, given in grams of CO2 emitted per cargo-carrying capacity and nautical mile. Ships are rated from A to E, with rating of A (major superior), B (minor superior), C (moderate), D (minor inferior) or E (inferior performance level).
5) What is the difference between EEDI and EEOI?
EEDI and EEOI are both energy efficiency indices introduced by the International Maritime Organization (IMO) for ships, but they assess different aspects of ship performance.
- Energy Efficiency Design Index (EEDI) is a measure of the energy efficiency of a ship's design. It is a technical requirement that applies to new ships of 400 gross tonnage and above constructed on or after 1 January 2013. The EEDI is calculated using a formula that takes into account the ship's type, size, and the power. The lower the EEDI, the more energy-efficient the ship is.
- Energy Efficiency Operational Indicator (EEOI) is a measure of how efficiently a ship is operated and the full form of EEOI is not "Energy Efficiency Operational Index". It is calculated based on the ship's actual fuel consumption, cargo carried, and distance travelled over a specific period. The EEOI is not a regulatory requirement, but it is used by ship operators and charterers to compare the environmental performance of different ships. A lower EEOI indicates that a ship is being operated more efficiently and emitting less greenhouse gas per unit of transport work.
In summary, EEDI is a measure of a ship's design efficiency, while EEOI is a measure of operational efficiency of the ship. Both indices are important for reducing energy consumption and greenhouse gas (GHG) emissions from shipping, but they serve different purposes.