The much anticipated and debated EEXI (Energy Efficiency Existing Ship Index) and CII (Carbon Intensity Indicator) regulations have gone effective as of January 1, 2023. All ships of 5,000 gross tonnage and above will be assigned a CII letter rating from A to E (with A being the best). All ships of 400 gross tonnage and above will also calculate and compare their EEXI value to baseline, with the regulations requiring such value to be below the required EEXI for a comparable ship. This is an initial step in the IMO’s decarbonization strategy seeking to improve the energy efficiency of the shipping industry, and there are plenty of criticisms. It remains to be seen how industry participants will adapt to these new regulations.
