# Integration of economic and technical maritime transport sector challenges into International Maritime Organization (IMO) regulations

Morgane Querel

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Morgane Querel. Integration of economic and technical maritime transport sector challenges into International Maritime Organization (IMO) regulations. OceaNext 2024, Institut universitaire mer et littoral (IUML), Jun 2024, Nantes (France), France. hal-04631830

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Distributed under a Creative Commons Attribution 4.0 International License
OCEANEXT 2024

06/2024 - Nantes

Querel Morgane

Integration of
economic and
technical maritime
transport sector
challenges into
International Maritime
Organization (IMO)
regulations

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COMO
Centre de Droit Maritime et Océanique
# Table of contents

## II – Integration of economic maritime transport sector challenges into IMO regulations

### I – Introduction:

International Maritime Organization (IMO) and climate change

## III – Integration of technical maritime transport sector challenges into IMO regulations
# I – Introduction:

International
Maritime
Organization
(IMO) and climate
change

# III – Integration of
technical maritime
transport sector
challenges into
IMO regulations

# II – Integration of
economic maritime
transport sector
challenges into IMO
regulations
# I – Introduction: IMO and climate change

## What is the International Maritime Organization (IMO)?

<figure><img src="image_5.png" /></figure>

### Article 1 alinéa a of the Convention on the International Maritime Organization, as amended in 1975

To provide machinery for cooperation among Governments in the field of governmental regulation and practices relating to technical matters of all kinds affecting shipping engaged in international trade, and to encourage the general adoption of the highest practicable standards in matters concerning maritime safety and efficiency of navigation, [the prevention and control of marine pollution from ships; and to deal with legal matters related to the purposes set out in this Article]
# I - Introduction: IMO and climate change
## What is the impact of maritime transport sector ?

~ 3% of global
greenhouse gaz
(GHG) emissions

<figure><img src="image_6.png" /></figure>

UNCTAD – Review of
Maritime Transport
2023

In case of inaction, ≈
17% of the global CO2
emissions in 2050

<figure><img src="image_7.png" /></figure>

Pour chaque **TONNE**
de marchandises transportées
sur un kilomètre

<figure><img src="image_8.png" /></figure>

Un navire émet
**12 g de CO₂**

<figure><img src="image_9.png" /></figure>

Un train émet
**14 g de CO₂**

<figure><img src="image_10.png" /></figure>

Un camion émet
**76 g de CO₂**

Research and trafic, 2013
# I – Introduction: IMO and climate change

## What are the competence of IMO regarding climate change?

### Articles 1 alinéa a et 3 alinéas a et b

<figure><img src="image_11.png" /></figure>

### No. 4214. CONVENTION ON THE INTERNATIONAL MARITIME ORGANIZATION.* DONE AT GENEVA ON 6 MARCH 1948†

<figure><img src="image_12.png" /></figure>

### Article 3

#### UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE, 1992

<figure><img src="image_13.png" /></figure>

#### MULTILATERAL

#### United Nations Convention on the Law of the Sea (with annexes, final act and procès-verbaux of rectification of the final act dated 3 March 1986 and 26 July 1993). Concluded at Montego Bay on 10 December 1982

Authentic texts: Arabic, Chinese, English, French, Russian and Spanish.

Registered ex officio on 16 November 1994.

<figure><img src="image_14.png" /></figure>

### Articles 194, 211, 212 et 222

#### Article 2

#### KYOTO PROTOCOL TO THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE, 1997

<figure><img src="image_15.png" /></figure>
# I – Introduction: IMO and climate change

## What is the first step of IMO actions regarding climate change?

<figure><img src="image_16.png" /></figure>

2018 Initial IMO Strategy on Reduction of GHG Emissions from Ships

Marine Environment Protection Committee (MEPC) 72
# I - Introduction: IMO and climate change
## What are the actual ambition of IMO?

## Key targets

Carbon intensity:
40% in 2030

GHG emissions:
net zero in 2050

Uptake of zero or
near-zero GHG
emission technologies,
fuels and/or energy
sources: 5-10% in 2030

“Well-to-wake”
=
“Well-to-tank”
+
“Tank-to-wake”

## Principles

CH4 and N2O in
addition of CO2,
by CO2
equivalent

GHG
emissions:
20-30% en
2030

## Checking points

GHG
emissions:
70-80% en
2040
# I – Introduction: IMO and climate change

## What is MARPOL Convention?

International
Convention for the
Prevention of
Pollution from
Ships (MARPOL)
1973

<figure><img src="image_17.png" /></figure>

Annex VI – Prevention of
Air Pollution from Ships,
1997

Climat change

Air quality

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□ 0.5% global limit (MARPOL, 2020)

■ 0.5% EU Sulphur Directive limit (2020)

■ 0.1% Emission Control Area limit (MARPOL)

■ 0.5% local limit (Hong Kong, China) *

* Note that China and Hong Kong may go down to 0.1% before 2020

<table><thead><tr><td>Area</td><td>Sulphur limit</td><td>Scrubbers</td></tr></thead><tbody><tr><td>Global</td><td>0.5% (2020)</td><td>Yes</td></tr><tr><td>Sulphur ECA</td><td>0.1%</td><td>Yes</td></tr><tr><td>EU</td><td>0.1% in all ports</td><td>Open-loop restricted in some countries</td></tr><tr><td>China</td><td>0.5% in selected areas</td><td>Yes</td></tr><tr><td>California</td><td>0.1% within 24 nm</td><td>No, only through research exemption</td></tr></tbody></table>

Ioannis Mallidis, Stella Despoudi, Rommert Dekker et Dimitrios Vlachos, « *The impact of sulphur limit fuel regulations on maritime supply chain network design* » , Article, 11/2020
# I – Introduction: IMO and climate change
## What are the key energy efficiency measures?

### Addressing climate change

#### Over a decade of regulatory action to cut GHG emissions from shipping

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INTERNATIONAL
MARITIME
ORGANIZATION

**Committee outputs**

Energy efficiency regulations for ships: EEDI and SEEMP

2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025

**Implementation**

mandatory measures and guidance

evidence-based decision making

strategic objectives

3rd IMO
GHG Study

EEDI and SEEMP

EEDI Phase 1

Fuel consumption report to DCS

4th IMO
GHG Study

Aggregated results of the 2019 fuel consumption data

EEDI Phase 2

EEDI Phase 3 for certain ship types

EEXI survey

Collection of carbon intensity data (CII) for existing ships

EEDI phase 3 for remaining ship types

* Revised procedure on assessment of impacts on States
* Consideration of mid-term measures

Short-term measure: EEXI, CII

2023 IMO Strategy on reduction of GHG emissions from ships

* LCA guidelines

* Biofuels circular

Comprehensive impact assessment

* Review of short-term measure

* Approval of basket of mid-term measures

* 40% reduction of CO2 per transport work

* 5% uptake of zero-emission fuels, striving for 10%

* Indicative checkpoint: 20% reduction of the total annual GHG, striving for 30%

Net-zero GHG emissions by or around, i.e., close to, 2050

2030

2040

2050

Indicative checkpoint: 70% reduction of the total annual GHG, striving for 80%

Internationale Maritime Organization (IMO)
# I – Introduction: IMO and climate change

## What is the Energy Efficiency Design Index (EEDI)?

EEDI

ENERGY EFFICIENCY DESIGN INDEX
IMPROVING THE TECHNICAL
PERFORMANCE OF NEW BUILD SHIPS

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Ships which are
designed and constructed
today must be
**MORE ENERGY
EFFICIENT**
than the baseline,
thus reducing their
carbon intensity

<figure><img src="image_21.png" /></figure>

Performance targets are
increasingly stringent
over time, thus
**INCENTIVIZING
INNOVATION**
in ship design

<figure><img src="image_22.png" /></figure>

There are
**DIFFERENT GOALS FOR DIFFERENT TYPES OF SHIPS.**
recognizing the specificities
of different types of ships

<figure><img src="image_23.png" /></figure>

For example,
**THE LARGEST CONTAINER SHIPS**
(>200,000 DWT) built
after 1 April 2022
must be 50% more
efficient than the baseline

<figure><img src="image_24.png" /></figure>
# I – Introduction: IMO and climate change

## What is the Energy Efficiency Existing Ship Index (EEXI)?

### EEXI

### ENERGY EFFICIENCY EXISTING SHIPS INDEX IMPROVING THE TECHNICAL PERFORMANCE OF EXISTING SHIPS

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The requirements for EEXI certification ENTERED INTO FORCE on 1 November 2022

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All ships are required to calculate their Attained Energy Efficiency EXISTING SHIP INDEX (EEXI)

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The EEXI is a ONE-TIME CERTIFICATION for existing ships targeting design parameters

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There are a variety of technical means to IMPROVE THE CARBON INTENSITY of existing ships and achieve the Required EEXI

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A review clause requires IMO to REVIEW THE EFFECTIVENESS of the implementation of the EEXI requirements by 1 January 2026 at the latest, and, if necessary, develop and adopt further amendments

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# I - Introduction: IMO and climate change
## What is the Ship Energy Efficiency Management Plan (SEEMP)?

Part I : Ship Energy Efficiency Management Plan – 400GT –
2013

Part II : IMO ship fuel oil consumption system (DCS) – 5
000 GT – 2019

Part III : carbon Intensity Indicator – 5 000 GT – 2023

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MeSeaTime, Capt Rajeev Jassal
# I – Introduction: IMO and climate change

## What is the IMO ship fuel oil consumption system (DCS)?

<figure><img src="image_32.png" /><figcaption>Det Norske Veritas (DNV)</figcaption></figure>

* SEEMP Phase II

* Data collection system

* Ship above 5 000 GT

* 2019
# I - Introduction: IMO and climate change
## What is the carbon Intensity Indicator (CII)?

<figure><img src="image_33.png" /></figure>
# I - Introduction: IMO and climate change
## What is the maritime transport sector?

<figure><img src="image_34.png" /></figure>
## I – Introduction:
International
Maritime
Organization
(IMO) and climate
change

## II – Integration of
economic maritime
transport sector
challenges into IMO
regulations

## III – Integration of
technical maritime
transport sector
challenges into
IMO regulations
## II – Integration of economic maritime transport sector challenges into IMO regulations

### How much cost of a ship?

Depending of
ship
caracteristics

<figure><img src="image_35.png" /></figure>

Shipbuilding,
retrofit and
maintenance

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<figure><img src="image_37.png" /></figure>

Long term
investment

<figure><img src="image_38.png" /></figure>

Operational
costs
## II – Integration of economic maritime transport sector challenges into IMO regulations

### How is visible the economical importance of maritime transport sector?

<figure><img src="image_39.png" /></figure>

UNCTAD – Review of
Maritime Transport
2023

Maritime
jobs

Impact on global and
States GDP

- 80% of world trade in
value

- 90% of world trade by
volume

+ 12 million tonnes of
goods per year

Basic necessities

Many other
related
industries
## II – Integration of economic maritime transport sector challenges into IMO regulations

### How maritime transport sector decarbonization will cost?

<figure><img src="image_40.png" /></figure>

THE WORLD BANK

By shipowners to
renew their fleets

<figure><img src="image_41.png" /></figure>

$2.2
trillion

<figure><img src="image_42.png" /></figure>

About $1 trillion
to $1.4 trillion
between 2030
to 2050

<figure><img src="image_43.png" /></figure>

To develop zero-
carbon fuel to reduce
GHG emissions by at
least 50% by 2050

Full
decarbonization of
the sector by 2050

<figure><img src="image_44.png" /></figure>

About $1.4
trillion to
$1.9 trillion

<figure><img src="image_45.png" /></figure>

<figure><img src="image_46.png" /></figure>

Only 13 % are
"ship-related"
## II – Integration of economic maritime transport sector challenges into IMO regulations

How are integrated the economic maritime transport challenges into IMO regulations?

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## II – Integration of economic maritime transport sector challenges into IMO regulations

How are integrated the economic maritime transport challenges into IMO regulations?

<figure><img src="image_48.png" /></figure>
## II – Integration of economic maritime transport sector challenges into IMO regulations

### What are the options for a market-based-measures (MBM)?

International Maritime Sustainability Funding and Reward (IMSF&R)

Tax

<figure><img src="image_49.png" /></figure>

All included support to States & stakeholders

Emissions Trading System (ETS)
## II – Integration of economic maritime transport sector challenges into IMO regulations

### What is IMO calendar for further actions?

<figure><img src="image_50.png" /></figure>
## II – Integration of economic maritime transport sector challenges into IMO regulations

## I – Introduction: International Maritime Organization (IMO) and climate change

## III – Integration of technical maritime transport sector challenges into IMO regulations
III – Integration of technical maritime transport sector challenges into IMO regulations

What are the technical contraints of maritime transport sector?

<figure><img src="image_51.png" /></figure>

UNCTAD – Review of
Maritime Transport
2023

Bulk carriers, tankers,
container ships, ro-ro,
cargo ships, passenger
ships and service ships

Travelling in all
seas and oceans

105 493 ships of
more than 100 GT
in January 2023

Weather and
Meteorology
conditions

0 to + 20
years old
# III – Integration of technical maritime transport sector challenges into IMO regulations

## Which energy source will be available tomorrow?

<figure><img src="image_52.png" /></figure>
# III – Integration of technical maritime transport sector challenges into IMO regulations

## What are the challenges regarding alternative fuels?

<figure><img src="image_53.png" /></figure>

<figure><img src="image_54.png" /></figure>

<figure><img src="image_55.png" /></figure>

<table><thead><tr><th></th><th>GREY<br>HYDROGEN</th><th>BLUE<br>HYDROGEN</th><th>GREEN<br>HYDROGEN</th></tr></thead><tbody><tr><th>Process</th><td>Reforming or<br>gasification</td><td>Reforming or<br>gasification with<br>carbon capture</td><td>Electrolysis</td></tr><tr><th>Energy<br>source</th><td>Fossil fuels</td><td>Fossil fuels</td><td>Renewable<br>electricity</td></tr><tr><th>Estimated<br>emissions<br>from the<br>production<br>process<sup>a</sup></th><td>Reforming: 9 - 11<sup>b</sup><br>Gasification: 18 - 20</td><td>0.4-4.5<sup>c</sup></td><td>0</td></tr></tbody></table>

<figure><img src="image_56.png" /></figure>
# III – Integration of technical maritime transport sector challenges into IMO regulations

## Which are the energy source available today?

<figure><img src="image_57.png" /></figure>

Other categories : turbines to produce electricity, hull form, ...

Wind Whip

<figure><img src="image_58.png" /></figure>

<figure><img src="image_59.png" /></figure>

<figure><img src="image_60.png" /></figure>

<figure><img src="image_61.png" /></figure>
# III – Integration of technical maritime transport sector challenges into IMO regulations

## How are the technical innovations integrated on ships?

### Efficiency measures

<figure><img src="image_62.png" /></figure>

<figure><img src="image_63.png" /></figure>

2009

Some of the needed emissions reductions can be achieved immediately using **technical and operational energy efficiency measures.**

<figure><img src="image_64.png" /></figure>

Infographic produced by UMAS: www.u-mas.co.uk
# III – Integration of technical maritime transport sector challenges into IMO regulations

## How are integrated the technical maritime transport challenges into IMO regulations?

<figure><img src="image_65.png" /></figure>
# III – Integration of technical maritime transport sector challenges into IMO regulations

## Which are the mid-term measures to ensure green fuels on WtW basis ?

### Guidelines on life cycle GHG intensity of marine fuels (LCA Guidelines)

<figure><img src="image_66.png" /></figure>

* Adopted in 2023;

* To provide a corresponding calculation basis for the new IMO Strategy;

* Define the emission factor attributed to a fuel according to its production pathways;

* To be improved by the MEPC.

<figure><img src="image_67.png" /></figure>
III – Integration of technical maritime transport sector challenges into IMO regulations

Which are the mid-term measures to ensure green fuels on WtW basis ?

GHG Fuel Standard (GFS)

- Currently under discussion as mid-term measures;

- To gradually limit GHG intensity from fuels used by ship;

- On a WtW basis, and including CO2, CH4 and N2O.

<figure><img src="image_68.png" /></figure>
SOCIAL AND ECONOMIC IMPACT
OF CLIMATE CHANGE

<figure><img src="image_69.png" /></figure>

The cost of adapting
coastal areas to rising
sea levels

Relocation of
whole towns

<figure><img src="image_70.png" /></figure>

<figure><img src="image_71.png" /></figure>

Loss of the capacity to
work due to heat

Shrinking
productivity
of harvests

<figure><img src="image_72.png" /></figure>

<figure><img src="image_73.png" /></figure>

More wars to gain
access to limited
resources

Prices of basic foodstuffs
and consumer goods
will rise

<figure><img src="image_74.png" /></figure>

<figure><img src="image_75.png" /></figure>

Fresh water will be
in short supply in
some areas

Extreme meteorological
phenomena will cause
widespread poverty

<figure><img src="image_76.png" /></figure>

Diseases will spread due to
higher temperatures

<figure><img src="image_77.png" /></figure>

Conclusion

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IBERDROLA

For you.
For the planet.

ECONOMY AND CLIMATE CHANGE

[More articles about Sustainability]
Q & A

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<figure><img src="image_80.png" /><figcaption>Querel Morgane</figcaption></figure>

<figure><img src="image_81.png" /></figure>

Thank you

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Sources

* BUREAU VERITAS, « *Alternative propulsion and future fuels* », Communication online, consulted the 11/06/2024: https://marine-offshore.bureauveritas.com/sustainability/alternative-propulsion-and-future-fuels

* CAP. RAJEEV JASSAL, « *Ship energy efficiency: here is all you need to know* », Article online, MeSeaTime, 24/05/2018: https://www.myseatime.com/blog/detail/ship-energy-efficiency

* DET NORSKE VERITAS (DNV), « *Make sure you comply with IMO DCS – Deadline 1 January 2019* », Communication online, 10/12/2018: https://www.dnv.com/news/make-sure-you-comply-with-imo-dcs-deadline-1-january-2019-135207/

* IBERDROLA, « *Economic impacts of climate change – How is climate change affecting the economy and society?* », Communication online, 10/12/2018: https://www.iberdrola.com/sustainability/impacts-of-climate-change

* INTERNATIONAL MARITIME ORGANIZATION (IMO):

* « *EEXI and CII - ship carbon intensity and rating system* », Communication online, consulted the 11/06/2024: https://www.imo.org/en/MediaCentre/HotTopics/Pages/EEXI-CII-FAQ.aspx

* « *Guidelines on life cycle GHG intensity of marine fuels (LCA Guidelines)* », Communication online, consulted the 11/06/2024: https://www.imo.org/en/OurWork/Environment/Pages/Lifecycle-GHG---carbon-intensity-guidelines.aspx

* « *International Convention for the Prevention of Pollution from Ships (MARPOL), as modified by 1978 and 1997 protocols* », London, Convention, 2 novembre 1973

* MEPC.304(72), « *Initial IMO Strategy on reduction of GHG emissions from ships* », Resolution, 13/04/2013.

* MEPC.376(80), « *Guidelines on life cycle GHG intensity of marine fuels (LCA Guidelines)* », Resolution, 07/07/2023

* MEPC.377(80), « *2023 IMO Strategy for reduction of GHG emissions from ships* », Resolution, 07/07/2023

* NORWEGIAN MARINE TECHNOLOGY RESEARCH INSTITUTE (MARINTEK) AND OTHERS, « *Second IMO GHG Study 2009* », Report, 2009, 220 p.

* « *IMO's work to cut GHG emissions from ships* », Communication online, consulted the 11/06/2024: https://www.imo.org/en/MediaCentre/HotTopics/Pages/Cutting-GHG-emissions.aspx
Sources

* INTERNATIONAL RENEWABLE ENERGY AGENCY (IRENA), « *Geopolitics of the Energy Transformation* », Communication online, consulted the 11/06/2024: https://www.irena.org/Digital-Report/Geopolitics-of-the-Energy-Transformation#page-1

* JAN HOFFMANN ET SHAMIKA N. SIRIMANNE, « *Review of maritime transport – Towards a green and just transition* », Report, United Nations Conference on Trade and Development (UNCTAD), 2023, 126 p.

* UNITED NATIONS:

* « *Convention on the International Maritime Organization* », Convention, Geneva, 06/03/1948, United Nations Treaty Collection, Vol.289, p.3

* « *Kyoto protocol to the United Nations framework Convention on climate change* », Kyoto Protocol, 11/12/1997, United Nations Treaty Collection, Vol.2303, p.162

* « *United Nations framework Convention on climate change* », Convention, New York, 09/05/1992, United Nations Treaty Collection, Vol.1771, p.107

* « *United Nations Convention on the law of the sea (UNCLOS)* », Convention, Montego Bay, 10/12/1982, United Nations Treaty Collection, Vol.1834, p.3

* UNIVERSITY MARITIME ADVISORY SERVICES (UMAS), « *How can shipping decarbonise?* », Presentation, consulted the 11/06/2024: https://slideplayer.com/slide/17492300/

* WIND SHIP, « *Wind propulsion for ships* », White Paper, 01/2022, 105 p.

* WORLD BANK, « *Carbon revenues from international shipping: enabling an effective and equitable energy transition* », Report, 04/2022, 76 p.