[Asia Economy Reporter Park Soyeon] The International Maritime Organization (IMO) is expanding regulations on greenhouse gas and other air pollutant emissions to existing ships, leading to mixed prospects for the shipbuilding and shipping industries.
According to foreign media and related industries on the 29th, the IMO Marine Environment Protection Committee (MEPC) agreed last week at its 75th session to amend the "Regulations for the Prevention of Air Pollution from Ships" (MARPOL Annex VI) to apply fuel efficiency regulations, equivalent to those for new ships, to existing vessels.
The IMO has set a goal to reduce ship greenhouse gas emissions by at least 40% by 2030 compared to 2008 levels. Since 2014, it has applied the Energy Efficiency Design Index (EEDI) regulations, which set phased reduction targets for ships ordered after 2014 and require meeting these targets from the ship design stage.
The recent amendment focuses on introducing the Energy Efficiency Existing Ship Index (EEXI) from 2023 for ships ordered before 2014, which were not subject to the EEDI.
If the amendment is adopted at the MEPC 76th session in June next year, existing ships will be graded from A to E based on fuel efficiency starting January 2023, with D and E grades subject to power restrictions, i.e., speed limits.
The rationale is that limiting speed reduces fuel consumption, thereby decreasing pollutant emissions.
The shipbuilding industry views these regulations as a positive development.
To maintain speed under these regulations, older ships will need to use alternative fuels or be retrofitted with emission reduction devices.
However, the general industry outlook is that shipowners are more likely to scrap old ships and order new ones rather than invest in costly retrofits.
A shipbuilding industry official stated, "Although the specific regulatory details have not yet been finalized, and it is uncertain whether this will lead to new orders, we see it as a good sign."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
