CII: monitoring of rating and how to stay compliant

From 1 January 2023, it is mandatory for all ships to collect emissions data for reporting their annual operational CII and CII rating.

This DNV statutory news aims to raise awareness of CII, the importance of reliable emission monitoring, and give recommendations on how to stay compliant.

This article is relevant for ship owners and managers.

Carbon Intensity Indicator (CII) and carbon intensity rating

The attained CII is a value reflecting the energy efficiency of a ship for a given calendar year based on the verified DCS data.

For certain ship types and operations, the attained CII may be further adjusted by applying correction factors as agreed by the IMO, as illustrated below:

Taking into consideration the type and the size of the ship and the relevant year the required CII is determined, the required CII gradually becomes stricter over time.

The requirement is that the attained CII should not exceed the required CII.

Based on the attained and the required CII, a ship is awarded its annual carbon intensity rating.

The rating spans from A to E, where A is the best and the required CII is the middle point of the C rating.

The rating is noted on the Statement of Compliance (SoC) issued each year by the DCS verifier.

The SEEMP Part III (the 3-year plan)

Every ship required to comply with the CII requirement shall have a plan on how to achieve the required CII for the next three years.

This plan, known as the SEEMP Part III, includes measures to be implemented together with a timeline and responsibilities for the implementation.

Another important aspect of the plan is that it is subject to self-evaluation, by evaluating the effectiveness of the planned measures over time and continuously improving the plan as needed.

To achieve this, knowing the current CII status of the ship is key, and, hence, having a proper monitoring tool is essential.

Monitoring of CII ratings

DNV provides the monitoring tool Emissions Insights, which provides an overview of your fleet and confirms where you are with respect to your CII, showing the preliminary year-to-date ratings based on your DCS data uploads so far.

The tool is available through My Services on Veracity for our existing DCS customers. The accuracy will, of course, depend on the frequency of your DCS data uploads.

Emission Insights also shows the corrected CII in case correction factors have been applied and reported.

Emissions Insights is illustrated below:

f you require a more comprehensive solution including, for instance, emission performance simulation and verified voyage statements, we recommend you to look into DNV’s Emissions Connect, which is a separate subscription service (Emissions Connect is also available for companies not using DNV as a DCS verifier).

Continued CII compliance

The implementation of the SEEMP Part III will be followed up through periodical company audits.

Failing to achieve the objectives of the SEEMP and receiving an inferior rating, in other words an E rating or three consecutive D ratings, will trigger actions by the ship manager in the form of a corrective action plan (CAP).

This includes planned actions to increase the energy efficiency sufficiently to achieve the required CII (C rating).

To remain compliant and receive the SoC, the CAP needs to be reviewed and verified.

Recommendations

For your SEEMP Part III plan to work and to ensure that you are on the right track, it is important to evaluate and monitor your vessels’ CII rating.

Here are some steps you can follow to stay compliant:

Review performance data by collecting data on key performance indicators, such as maintenance records, fuel consumption, voyage reports, and inspection reports. Use this information to identify trends and areas for improvement.
Conduct regular assessments of your vessels’ operations and performance, including safety inspections, risk assessments, and operational audits. These assessments can help identify potential problems and provide an opportunity to address them before they escalate.
Engage stakeholders including crew, management and customers in the evaluation process. Encourage them to share their perspectives and experiences and use this feedback to identify areas for improvement.
Use benchmarking tools such as Emissions Insights to compare your vessel’s performance against industry standards and best practices. This can help you identify areas for improvement.
Monitor progress regularly and track the results of your efforts to improve your vessel’s CII rating. This will help you determine the effect of selected actions and identify areas where additional efforts are needed.
Continuously improve and assess your vessel’s operations, processes and procedures. Regularly review and update your safety procedures and incorporate new technology and best practices as they become available.

References

TRN EEXI and CII requirements taking effect from 1 January 2023
TRN New DCS reporting scheme for CII correction factors and out-of-scope activities for MRV
CII topic page
SEEMP Part III topic page
IMO DCS topic page
Emissions Connect on the Veracity Marketplace

LINK TO THE ORIGINAL ARTICLE