Page 18 - 2021 - Q3 - Minerva in Focus

SEEMP and CII

As from 1 January 2023, Minerva vessels will have to have an approved SEEMP on board,
whose implementation will be subject to audits. The SEEMP will include mandatory
content, such as an implementation plan on how to achieve the CII targets. Within this
context, we have started preparing the new SEEMP while we have initiated the process
of obtaining certification as per ISO 50001 on Energy Management Systems.
Starting from 2024, Minerva will have to calculate the CII for each managed vessel. The
CII metric will be the Annual Efficiency Ratio [AER] given in grams CO2 per dwt-mile. The
Attained Annual CII will be documented and verified against the Required Annual CII to
determine an operational carbon intensity rating of A, B, C, D, or E. Rating of vessels is
expected to be publicly available.
A ship rated D for three consecutive years or E for one will have to develop a plan of
corrective actions to improve the required annual operational CII. The corrective action
plan will be included in the SEEMP and approved by the vessel’s Classification Society.
The reference values of the rating scheme are based on 2019 IMO DCS data. A reduction
factor will be applied to these references values, making it difficult for a vessel to main-
tain a steady rating throughout the years, as follows:
• 2023: 5%
• 2024-2026: additional 2% per year
Fit 55

On 14 July, the European Commission issued a package of proposals to make the EU’s cli-
mate, energy, land use, transport, and taxation policies fit for reducing net greenhouse
gas emissions by at least 55% by 2030 compared to 1990 levels. The long-term target is
that the EU becomes climate neutral by 2050. Achieving such climate neutrality requires
a 90% reduction in emissions from all transport sectors. This package, also known as
Fit for 55, includes, amongst other things, the inclusion of shipping to the existing EU
Emissions Trading System (ETS), the promotion of fuels with lower carbon intensity, and
incentives for increased energy efficiency.

EU ETS

The ETS puts a price on carbon and lowers the cap on
allowable emissions from specific economic sectors
every year. According to the EU, the emissions from
power generation and energy-intensive industries have
been brought down by 42.8% in the past 16 years. The
ETS is expected to have a similar impact on the maritime
sector.

Shipping companies will be liable to surrender allow-
ances according to the following schedule:
1. 20 % of verified emissions reported for 2023;
2. 45 % of verified emissions reported for 2024;
3. 70 % of verified emissions reported for 2025;
4. 100 % of verified emissions reported for 2026
and each year thereafter.

Graph: Costs of ETS allowances per vessel The allowances amount to be surrendered will derive from the existing EU MRV system
for shipping.
Based on the current Minerva fleet composition and EU trade volume, the graph on the
left depicts the cost of the average yearly allowances that will have to be surrendered
per vessel for the period 2023 to 2026, assuming a carbon price of 50 Euro/mt.

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