Discussions surrounding the IMO's mid-term measures, which will significantly impact the shipping industry's future, are actively progressing toward approval at the MEPC 83rd session next spring. While considerable differences remain on key issues—including GFS (Goal-Based Fuel Standard) requirements, flexibility mechanism introduction, carbon fund scale, and carbon levies—much of the uncertainty surrounding these measures is expected to resolve by next spring. The focus now shifts to developing practical, concrete strategies to address industry changes following implementation. These strategies encompass alternative fuel selection, cargo owner cost-sharing, and green shipping route establishment.

This autumn edition presents statistical data and analysis on the CII (Carbon Intensity Indicator) ratings implemented in 2023. As anticipated, vessels with A and B ratings increased compared to 2022, while those with C and D ratings decreased. This shift primarily stems from speed reductions due to CII and EEXI (Energy Efficiency Existing Ship Index) regulations, along with partial adoption of biofuels.

To achieve domestic NDC (Nationally Determined Contribution) targets, increasing demand for overseas hydrogen imports will likely drive orders for ultra-large ammonia carriers and liquefied hydrogen carriers. Korea has become the first country to implement the CHPS (Clean Hydrogen Portfolio Standard), requiring power companies to produce a portion of their electricity from clean energy sources. With Japan and Europe expected to follow suit, various power generation methods are being explored: ammonia co-firing in coal plants, hydrogen co-firing in LNG facilities, and hydrogen power generation through fuel cells or engines. Initially, the most economical option—ammonia co-firing—will lead the transition toward hydrogen power generation. This edition also updates our summer coverage of liquefied hydrogen carrier technical developments.

Global engine manufacturers are accelerating ammonia engine development, with KSOE and HD Hyundai Heavy Industries focusing on four-stroke high-pressure variants. We feature an interview with Senior Executive Vice President Sang-ki Lee of HD Hyundai Heavy Industries, who leads their ammonia engine development. The discussion covers GHG reduction prospects, development progress and plans, exhaust gas aftertreatment systems, and critical operational safety considerations.

The Regulatory Updates section introduces alternative fuel and carbon reduction technology regulations under discussion by the IACS Safe Decarbonization Panel. As one of the IMO's key technical bodies, IACS actively participates in IMO convention development while maintaining close industry cooperation.

In the Inside KR section, we highlight several achievements: correcting a CII formula error, installing the world's first onboard carbon capture device on a 2,200 TEU vessel, publishing FuelEU Maritime guidelines for next year's implementation, and delivering a low-carbon sail cargo vessel with innovative GHG reduction technologies. Additionally, recent Gastec events in Houston featured multiple AIP (Approval in Principle) ceremonies for ammonia-powered container ships and ammonia fuel supply systems.

As IMO mid-term measure discussions advance rapidly, our next issue will provide focused analysis of the upcoming MEPC 82^nd session deliberations.