Canadian Carbon Intensity Indicator Implementation

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Since 1 January 2024, the Canadian Carbon Intensity Indicator (CCII) applies to Canadian ships of 5,000 gross tonnage and above operating only within all Canadian waters (including within the Great Lakes and St Lawrence River) or only within all the aforementioned areas and travelling to ports of the United States provided the ship voyages to these ports comprise 50% or less of annual trips, says an article published on lr website.

Summary

  • The Canadian Carbon Intensity Indicator (CCII) applies to Canadian ships of 5,000 gross tonnage and above operating solely within Canadian waters or traveling to US ports for less than 50% of their annual trips.
  • Applicable ship types include bulk carriers, tankers, ro-ro passenger, general cargo, ro-ro cargo, and containerships, with exclusions for Category A designated ships under the Polar Code and government ships.
  • Transport Canada found that most of the Canadian fleet couldn’t meet IMO’s greenhouse gas (GHG) reduction requirements due to unique design and operational characteristics, leading to the adoption of CCII aligning with Canada’s 2030 Emissions Reduction Plan.
  • Ship Energy Efficiency Management Plans (SEEMP) must be updated by March 31, 2024, as per MARPOL Annex VI regulations, with Lloyd’s Register (LR) verifying updates and issuing Confirmations of Compliance.

Applicability And Scope

  • The CCII applies to Canadian ships of 5,000 gross tonnage and above operating solely within Canadian waters or to Canadian ships operating within Canadian waters and traveling to US ports for less than 50% of their annual trips.
  • Applicable ship types include bulk carriers, tankers, ro-ro passenger, general cargo, ro-ro cargo, and containerships.
  • Exclusions from CCII application include Category A designated ships under the Polar Code and government ships. Domestic ships are also exempt from IMO’s Energy Efficiency Existing Ship Index (EEXI) requirements.

Background And Rationale

  • Transport Canada found that most of the Canadian fleet couldn’t meet IMO’s greenhouse gas (GHG) reduction requirements due to unique design and operational characteristics.
  • The Government of Canada adopted its own GHG reduction targets, aligning with the 2030 Emissions Reduction Plan.
  • CCII aims to apply IMO measures while considering the Canadian fleet’s technical and operational characteristics by utilizing unique Canadian reference lines.

Instructions For Implementation

  • Ship Energy Efficiency Management Plans (SEEMP) must be updated by ship managers, owners, or operators by March 31, 2024, as per MARPOL Annex VI regulations.
  • Lloyd’s Register (LR) will verify SEEMP updates and issue Confirmations of Compliance.
  • Ship managers are required to submit fuel oil consumption data reports to LR by March 31 of each calendar year, along with calculated annual attained CCII.
  • LR will verify the data against required operational CCII and apply annual reduction rates guided by the Guidelines on Canadian CII Reference Lines.

Compliance And Consequences

Failure to submit data by March 31 of each year could lead to LR being unable to verify data before the Transport Canada submission deadline.

The implementation of CCII reflects Canada’s commitment to GHG reduction in the maritime sector, acknowledging the unique challenges and characteristics of its domestic fleet.

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Source: lr.org