Adoption of  an  Energy Efficiency
                    Design Index for International Shipping
                         The International Maritime Organization has adopted first-ever
                         energy efficiency design standards for new ships. Under this new
                    program, an Energy Efficiency Design Index (EEDI) will be required
                    for new ships, with progressively more stringent efficiency targets
                    phasing in beginning in 2013. These standards will result in significant
                    reductions in fuel consumption, cutting fuel costs for ship operators,
                    while reducing air and marine pollution from ships, including CO2.
                    This fact sheet contains an overview of this international energy
                    efficiency program for ships.

                    Overview
                    On July 15, 2011, the International Maritime Organization (IMO) amended the
                    International Convention for the Prevention of Pollution from Ships (MARPOL)
                    to include energy efficiency standards for new ships through the designation of an
                    Energy Efficiency Design Index. These EEDI standards phase in from 2013 to 2025,
                    and by then will result in 30 percent reduction in fuel consumption, and hence CO2
                    compared to today's vessels.

                    The EEDI creates a common metric to measure and improve new ship efficiency.
                    This metric is calculated as the rate of carbon dioxide (CO2) emissions from a ship
                    per transport work performed by the ship. CO2 emissions are directly related to
                    energy efficiency and are calculated as fuel consumption multiplied by a fuel carbon
                    factor. Transport work is calculated as a function of the cargo capacity of the ship and
                    the design ship speed.

                    The EEDI applies to the most energy-intensive segments of the international ship-
                    ping fleet, representing more  than 70 percent of ship emissions. These segments
                    include the following ship classes: container ships, general cargo ships, refrigerated
                    cargo carriers, gas tankers, oil and chemical tankers, dry bulk carriers, and combi'
                    nation dry/liquid bulk carriers. In its present form, the EEDI requirements do not
                    apply to other ship classes or  ships with non-standard propulsion systems (e.g. diesel-
                    electric, turbine, or hybrid propulsion systems).  IMO is considering the extension of
                    EEDI standards to other classes of ships.
SEPA
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
                  EPA-420-F-11-025
                         July 2011

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           The Need for Efficiency Standards
           Ships provide the most efficient means for transporting goods. However, emissions from ships
           represent a meaningful contribution to air and marine pollution around the world. Emissions
           from ships will continue to grow if left unchecked. Shipping today represents about 3 percent of
           global greenhouse gas emissions. Worldwide seaborne trade has been growing about 4 percent a
           year for decades. A recent study by IMO projects that emissions from shipping will increase 150
           percent to 250 percent by 2050 in the absence of policies to reduce emissions.1

           The IMO study also shows that many options exist to improve the efficiency of new ships,
           thereby reducing fuel consumption and emissions.  The measures identified by the study include
           hull improvements, propeller/propulsion system upgrades, alternative power options (e.g., tow-
           ing kite), hull coatings, propeller improvements, auxiliary systems, speed reduction, and main
           engine improvements.

           Although technologies and methods are available  today that can be used to improve energy
           efficiency and therefore achieve cost savings, standards in the form of energy efficiency targets
           such as the EEDI are needed to provide an incentive for the implementation of this technology.
           While many of these efficiency improvements will pay for themselves through fuel savings, there
           are non-financial barriers that prevent their use. These non-financial barriers include 1) fuel
           price uncertainty, 2) split incentives between owners, operators, and shipyards and 3) lack of
           good information on the fuel efficiency improvements for different technologies, and impact on
           life cycle costs.
(J|        EEDI Standards
           The EEDI standards are expressed as percent emissions reductions from reference lines estab-
           lished for each ship class. These reference lines were developed by fitting a curve through data
           on the baseline EEDI values of the existing fleet. Therefore, the reference line for a given ship
           class represents the baseline EEDI values of that ship class, and is expressed as a function of
           ship size,

           The EEDI standards for new ships will be implemented through four phases from 2013 to  2025,
           based on the contract date of the ship. Phase 0, beginning in 2013, calls for new ships to attain
           EEDI  values at or better than the applicable reference line. Phases 1 and 2 begin in 2015 and
           2020 and call for up to 10 and 20 percent improvements, respectively. Phase 3 calls for new
           ships from 2025 to attain EEDI values up to 30 percent better than the applicable reference line.
           1  Second IMO GHG Study 2009.  International Maritime Organization. MEPC 59/INF.10.
           April 2009.

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Benefits
When this program is fully phased in, new ships will be 30 percent more efficient than they
are today. This efficiency improvement has beneficial energy implications due to reduced oil
consumption. More efficient ships will also emit lower amounts of criteria pollutants such as
oxides of nitrogen (NOx), oxides of sulfur (SOx), and particulate matter (PM). Emissions of
CO2, which are directly related to fuel consumption, will be reduced by 30 percent per ship over
the long run compared to typical ships operating today. Reductions in these air emissions will
benefit human health and the environment, including benefits from reduced acid deposition in
our oceans.
For More Information
Information on EPA's international efforts at IMO and our national efforts related to shipping
emissions is available at EPA's Office of Transportation and Air Quality web site at:

          www.epa.gov/otaq/oceanvessels.htm

Further information on the IMO actions may be directly obtained from the International Mari-
time Organization at:

          www.imo.org

For additional information, please contact the Assessment and Standards Division at

          Assessment and Standards Division
          Office of Transportation and Air Quality
          U.S. Environmental Protection Agency
          2000 Traverwood Dr.
          Ann Arbor, MI48105

Or:

          www.epa.gov/otaq/omS'Cmt.htm

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