LISW23: Incoming IMO Secretary General Vows to Address CII Concerns

by Ship & Bunker News Team
Friday September 15, 2023

Incoming IMO Secretary General Arsenio Dominguez faced criticism of the UN body's Carbon Intensity Indicator regulation at an industry event this week.

Dominguez was speaking on a panel at the London International Shipping Week headline conference at the IMO headquarters on Wednesday.

From this year all vessels larger than 5,000 GT will have calculated for them a CII rating based on historical data submitted to the IMO. The rating is a calculation of the CO2 the vessel emitted per unit of cargo capacity per nautical mile.

The rating will come as a letter between A and E, with A at the top of the scale, and ratings will be determined on an annual basis. Ships receiving a D rating for three years or an E rating for a single year will need to implement a ship energy efficiency management plan setting out their plans to improve their performance.

Whichever way a ship is graded carries a cost, and a change to CII grading has implications for its competitiveness in the market. But criticism of the regulation has been aimed at the different incentives for owners and charterers under the regulation, with owners facing the cost of a lower grade while charterers have little incentive to change their use of the ship to improve it.

"Our review of the CII has already been established," Dominguez said at the event on Wednesday.

"We are hearing you loud and clear.

"We have several proposals already put forward.

"What I can tell you is that we do listen.

"That's why the regulation was introduced with a soft approach at the beginning -- it's to get all this feedback, get this information.

"Keep having faith in this organisation, because we continue to deliver, but we need you all on board."

Dominguez was elected as the next IMO Secretary General in July. He is due to take up the role from January 1, taking over from Kitack Lim.