The World Shipping Council (WSC) has proposed to the International Maritime Organization (IMO) a new global vessel efficiency system to further improve the carbon and fuel efficiency of the world's fleet and reduce greenhouse gas emissions.

The proposal is for the IMO to apply vessel efficiency design standards for both new and existing vessels in the world's fleet.

Newly built vessels would be subject to mandatory efficiency standards requiring new ships to be built with features and technologies that further improve the energy efficiency of the vessels to reach defined levels.

These standards would be similar in nature to the fuel efficiency standards required of cars and trucks in many countries around the world today. The standards would also be tiered with higher standards required over time as technology developments allow further improvements.

Under the WSC proposal, existing vessels, like the newly built, would also be subject to improved efficiency standards.

Recognizing that existing vessels have more limited ability to improve efficiency, existing vessels would be subject to less aggressive standards. These standards would be tiered over time.

Establishing efficiency standards for existing vessels is important due to the long life of vessels. Most vessels today operate for 25 to 30 years before being recycled, meaning that improvements in the existing fleet can contribute to reduced CO2 emissions sooner than a system that would rely solely on application of standards to newly built vessels.

Under the WSC proposal, existing vessels that meet the established efficiency standards would operate free of any fees.

Existing vessels that fail to meet the standards would be subject to a fee assessed for each ton of fuel consumed.

Fees would be deposited into a fund managed by the IMO. The specific fee assessed would vary depending on how close the vessel was to meeting the standard, with the fees being higher for those vessels with the lowest efficiency. As such, the proposed system would reward improved efficiency across the fleet and discourage operation of the least efficient vessels.

"The IMO achieved significant success recently in reaching a legally-binding global agreement that will dramatically reduce NOx, SOx, and particulate matter (PM) emissions from ships around the world. It is appropriate for the IMO to build on that success and establish an international regulatory system that can reduce carbon emissions as well," said Chris Koch, President and CEO of the World Shipping Council.

"The World Shipping Council and its members hope that the Vessel Efficiency System proposal will help the IMO develop a specific regulatory regime that would ensure improved efficiency across the world's maritime fleet and reduce CO2 emissions.
Such action will demonstrate the continued leadership of IMO and the maritime industry in forging progressive solutions that will protect the environment and provide an effective global response to this global issue. "