Regulatory Updates

KR Decarbonization Magazine

VOL.04 | autumn 2023

MEPC 80 Key Highlights

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1. The uptake of zero or near-zero GHG emissions technologies, fuels and/or energy sources is expected to increase

The revised 2023 strategy for reducing greenhouse gas (GHG) emissions from international shipping includes the adoption of technologies, fuels, and energy sources that produce zero or near-zero GHG emissions. Consequently, we can anticipate that upcoming discussions will focus on the development of mid-term measures.

- Evaluation of the total energy use of various fuels in international shipping (e.g. 5th IMO GHG Study)

- Estimation of a 5% reduction in GHG emissions corresponding to total energy use.

- The following GHG reduction pathway may be established for international shipping:

1) Define "zero or near-zero GHG emission" alternative fuels and set a fleet ratio capable of using these fuels between 5-10%.

2) Regulate the actual consumption of certified zero or near-zero GHG emission alternative fuels to be 5-10% of the total annual fuel oil consumption per individual ship. Provide appropriate incentives for early adopters, considering that ships using alternative fuels will mostly be designed for dual-fuel usage.

3) For ships not using alternative fuels, regulate through a goal-based approach that allows the use of all available alternative fuels including biofuels and its blends. Aim to reduce total GHG emissions corresponding to the total annual fuel oil consumption of each ship by 5-10%, etc.

In addition to the levels of ambition above, the indicative checkpoint for the 20~30% reduction of GHG emissions from international shipping by 2030 will be implemented at the same time as the current 40% carbon intensity reduction requirements. This means that future decisions on the remaining carbon intensity reduction factors for the years 2027 to 2030, which were left blank, will be significantly affected and further strengthened reduction factors will likely be introduced.


2. Relationship between Bio-fuels and Carbon Intensity Indicator(CII)

MEPC 80 approved MEPC.1/Circ.905 which provides the possibility to improve the carbon intensity of international shipping by using sustainable bio-fuels. Eligible Bio-fuels have to have been certified by an international certification scheme such as ISCC, RSB etc. Their well-to-wake GHG intensity values must not exceed 33 gCO2eq/MJ, and they may be assigned a Cf equal to the value of the well-to-wake GHG emissions of the fuel by multiplying its lower calorific value (LCV). Therefore, the following scenario can be expected:

1) Where the WtW GHG intensity value for a specific bio-fuel is 24.6gCO2eq/MJ, its LCV value is 0.04035 MJ/g, and it is blended with no more than 30% biofuel by volume

2) Conversion factor (Cf) for the bio-fuel can be calculated as follows:
Cf = E(gCO2eq/MJ) × LCV(MJ/g) = 24.6 × 0.04035 = 0.993CO2eq

3) The Cf values for the bio-fuel blends can be calculated as follows:

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