Carbon Intensity Indicator (CII) is a rating scheme developed by the IMO to measure the annual emissions performance of all ships above 5,000 GT in terms of CO2 per DWT and distance covered. The CII will be used to determine the annual reduction factor needed to ensure continuous improvement of the ship’s operational carbon intensity within a specific rating level.
Unlike ship design requirements (EEDI, EEXI), the CII focuses on tracking emissions during operations. Specifically, the CII creates a standard to measure how efficiently a ship transports goods or passengers calculated in grams of CO2 emitted per cargo-carrying capacity and nautical mile. Based on collected data, the vessel is given an annual operational carbon intensity rating, ranging from A to E:
- A) Major superior
- B) Minor superior
- C) Moderate
- D) Minor inferior
- E) Inferior
A ship rated D for three consecutive years or E for a single year would have to submit a corrective action plan to show how the required index (C or above) would be achieved.
The first CII assessment will take place in 2024 based on 2023 data. In 2025, targets for the period 2027-2030 will be decided, with tighter limits on carbon emissions being implemented over time.
DNV INSIGHT: What can be measured can be managed
The Carbon Intensity Indicator (CII) is not only a useful regulatory tool to reach the IMOs GHG targets it has also been designed in part to incentivise owners to take steps to achieve better ratings. As more cargo owners seek to charter vessels with good ratings, investing in technologies to reduce emissions to achieve a better score will be a competitive advantage. Vessels that can demonstrate superior performance may also be able to attract financing with more favourable terms.