CII – Carbon Intensity Indicator

Frequently asked questions (FAQs)

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What is the CII and the CII rating scheme?

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The Carbon Intensity Indicator (CII) is a measure of how efficiently a ship transports goods or passengers and is given in grams of CO2 emitted per cargo-carrying capacity and nautical mile. The ship is then given an annual rating ranging from A to E, whereby the rating thresholds will become increasingly stringent towards 2030. The CII applies to all cargo, RoPax and cruise ships above 5,000 GT. 

The yearly CII is calculated based on reported IMO DCS data and the ship is given a rating from A to E. For ships that achieve a D rating for three consecutive years or an E rating in a single year, a corrective action plan needs to be developed as part of the SEEMP and approved.

What ships does the CII apply to?

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The CII applies to all ships above 5,000 GT of the following ships types: bulk carriers, gas carriers, tankers, container ships, general cargo ships, refrigerated cargo carriers, combination carriers, LNG carriers, vehicle carriers, Ro-Ro cargo vessels, Ro-Ro passenger vessels and cruise ships.

How is the CII calculated?

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The basic CII is calculated as CO2 emitted per cargo-carrying capacity and nautical mile. The CII calculation will be further improved through correction factors in a separate guideline that will be developed next year.

For the time being, using actual cargo carried instead of capacity (i.e. the EEOI) can only be reported on a voluntary basis and not for the purpose of the CII rating. 

What is AER/cgDist?

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For different ship segments, the CII is based on different ways of measuring the carbon footprint of the transport work. The Annual Efficiency Ratio (AER) and capacity gross ton distance (cgDist) are two such CIIs using different units. AER (emission per dwt-mile) is used for segments where the cargo is weight critical, and cgDist (emissions per gross ton-miles) for volume-critical cargo.

Why is AER/cgDist used as the CII and not EEOI (Energy Efficiency Operational Indicator)?

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AER (emission per dwt-mile) and cgDist (emissions per gross ton-miles) are supported by data elements reported through the IMO DCS system. The IMO DCS system does not collect the cargo data required to calculate the EEOI (emission per tonne-mile). Therefore, the EEOI is not an option to use for the CII today. However, it will be possible to voluntarily report cargo data and report the EEOI for those who wish to do so.

When will the CII enter into force and what is required to become compliant?

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The CII requirements will take effect from 2023. An enhanced SEEMP with an implementation plan for achieving the required CII needs to be approved and kept on board. The SEEMP will be subject to company audits, although the guidelines for the audit are still to be developed.

Why does the CII use 2019 as a reference and not 2008 like the IMO GHG Strategy?

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The reference year for CII is 2019 because this is the first year with verified DCS data reported to the IMO. Otherwise, the reference line would have to be established based on highly uncertain AIS data. The reduction factors are relative to 2019 and are adjusted considering achieved improvements between 2008 and 2019.

What is the difference between the EEXI and the CII?

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The EEXI is a one-time certification equivalent to the EEDI (Energy Efficiency Design Index) phase 2 or 3 concerning design parameters of the vessels. The CII is an operational indicator and will be assessed annually from 2023 with yearly stricter emission limits. The EEXI and CII are applicable to the same ship types.

The difference is that CII ratings will apply to ships 5,000 GT and above regardless of propulsion type.

What is the relation between the CII and the SEEMP?

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A strengthening of the SEEMP (enhanced SEEMP) to include mandatory content is a part of the CII regulation. The intention is to ensure continuous improvement of energy efficiency and lower carbon intensity. The enhanced SEEMP shall include an implementation plan on how to achieve the CII targets, and it will also be subject to approval and company audits. For ships that achieve a D rating for three consecutive years or an E rating in a single year, a corrective action plan needs to be developed as part of the SEEMP and approved.

How would consumption during anchoring, for example, be considered?

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Currently, the CII does not attribute fuel consumption to specific stages of a voyage or operations, including anchoring. Consumption during anchoring would simply be considered as consumption without distance travelled. However, certain exemptions or corrections, such as in cases of adverse weather conditions or extended time in port, are under discussion.

What is the CII relationship to Poseidon Principles or Sea Cargo Charter?

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Poseidon Principles uses AER, and Sea Cargo Charters uses EEOI. Both are initiatives by major shipping banks and charterers or cargo owners, respectively, for driving the implementation of decarbonization and do not have a direct link to the IMO process of establishing the CII. In future, the Poseidon Principles and Sea Cargo Charters may align definitions and indicators with the IMO, although keeping their own trajectory.

How can a shipowner control the CII?

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The CII is based directly on the fuel consumption, which is influenced by how a specific ship is operated in combination with its technical efficiency and fuel. Its value will be affected by the type of fuel used, the efficiency of the vessel and operational parameters such as vessel speed, cargo transported, weather conditions and the general condition of the vessel (e.g. biofouling).

An owner can control the CII by optimizing operations and ensuring vessels are in a good condition. Charterers will have a major influence over the CII of the ships they charter by selecting the speed. It will be beneficial for owners/operators to continuously monitor the CII performance of the vessel to avoid having to take drastic measures unexpectedly. DNV can assist in monitoring the CII through the Emissions Insight Service.

How can DNV assist with CII matters?

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As an RO (Recognized Organization), DNV currently verifies DCS emission reports and SEEMPs on behalf of flag states. We expect that this will also apply to the annual CII rating and the enhanced SEEMP. The monitoring and rating of emissions are shared with our customers through the Emission Insight Service (DNV class services).

Our independent advisory team can assist with consultancy services related to measures for compliance and strategic approaches for the selection and implementation of relevant measures. 

Find more information on our CII service page.

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