| MEPC 82 Key Highlights |

▶ Technical measures allow non-compliant ships using fossil fuels to purchase Surplus Compliance Unit from ships using low-GHG alternative fuels or purchase Remedial Compliance Unit from GFS Registry at predetermined prices to meet fuel standards. Additionally, ships using alternative fuels with low GHG emissions can receive incentives to offset initial investment costs for ship construction and to bridge the price gap between alternative fuels and fossil fuels.

▶ However, it remains undecided whether the calculation of the attained GHG Fuel Intensity (GFI) will consider the lifecycle GHG emissions of marine fuels (on a Wellto- Wake basis) in accordance with LCA guidelines or only the onboard GHG emissions (on a Tank-to-Wake basis). Additionally, no decision has been made on whether to introduce a separate levy per tonne of GHG emissions as an economic measure, in addition to the trading or purchase of GHG credits.

▶ The MEPC 82 session agreed to convene two intersessional working group meetings: one from February 17 to 21, 2025 (5 days), and another two-day meeting in the week before the MEPC 83 session in April 2025. These meetings will focus on advancing the development of mid-term measures. In alignment with the 2023 revised strategy for reducing greenhouse gas (GHG) emissions from international shipping, the approval of amendments to MARPOL Annex VI (scheduled for the MEPC 83 session in April 2025) and their adoption (anticipated during a special MEPC session in October 2025) are expected to proceed as planned.

▶ Relevant data on CII metrics, correction factors and voyage adjustments, enhancement of the enforcement mechanism, improvement of the IMO DCS, revision of CII reduction factors, and other elements have been collected to review short-term measures. A two-step approach was agreed upon : first, focusing on the CII reduction rates and correction factors, and second, on substantial modifications to the CII implementation framework. This approach aims to assess the effectiveness of the CII framework using different implementation data.

▶ During MEPC 82, it was further agreed to establish a Correspondence Group and an Inter-sessional Working Group (ISWG, meeting for three days a week before MEPC 83) to conduct a detailed review of short-term measures. Discussions are expected to prioritize strengthening the SEEMP implementation framework, determining CII reduction factors for the period from 2027 to 2030, and developing correction factors for port waiting times and ships engaged in short-sea voyage.

▶ Considering that the review of short-term measures must be finalized before 1 January 2026, as per regulation 28.11 of MARPOL Annex VI, the first step of the review is expected to be completed at MEPC 83, scheduled for April 2025.