EU’s New Environmental Laws Challenges VN’s Fleet


  • Ships entering EU ports face fees for carbon emissions.
  • IMO aims to curb air pollution from ships.
  • Plans to decommission old vessels and invest in new-generation ships.

EU Regulations Impact

January, 2024 onwards ships entering EU ports face fees for carbon emissions, prompting a $3.6 billion cost estimation for the maritime sector, reports Viet Nam News.

Global Transition to Eco-friendly Practices

Leading shipping companies like Maersk Line, Cosco, CMA-CGM, and Evergreen are moving towards clean fuel-powered ships, posing a challenge for Vietnamese firms on international routes.

IMO’s Environmental Criteria

The International Maritime Organization’s criteria aim to curb air pollution from ships, pushing for compliance with the Prevention of Pollution from Ships Convention.

EEXI Compliance

Only 40% of Vietnamese vessels comply with Energy Efficiency Existing Ship Index (EEXI) regulations, impacting mainly oil tankers and bulk carriers.

Feasible Solutions

Options like power reduction, hull enhancements, alternative fuels, and energy-saving technologies are available for non-compliant vessels.

Technological Integration

Utilizing tech to optimize logistics processes, reduce port waiting times, and install shore power stations are some strategies embraced.

Fleet Revitalization

Plans to decommission old vessels and invest in new-generation ships, including container ships, oil tankers, and bulk carriers by 2030.

Green Fuel Exploration

Exploring vessels powered by green fuels like methanol or LNG to align with eco-friendly initiatives.

Impact on Efficiency And Challenges

Compliance with regulations, especially EEXI, leads to power reduction, affecting operational efficiency and cargo transportation contract acquisition.

Charter Considerations

Charter contracts now evaluate emission reduction criteria, posing challenges for older vessels.

Higher Costs for Clean-fueled Vessels

Building ships with low emissions incurs around $10 million more than conventional vessels.

Compliance Status

VIMC reports that about 45 of its 60 vessels comply with EEXI, with various degrees of power restrictions and evaluations for the Carbon Intensity Indicator (CII).

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Source: Viet Nam News


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