Carbon intensity regulations have gotten complicated with all the rating thresholds, compliance options, and enforcement timelines flying around. The IMO just made it real — mandatory carbon ratings starting July 2025. Ships rated D or E for three years straight face operational restrictions.
How the Rating System Works
The Carbon Intensity Indicator (CII) measures grams of CO2 emitted per cargo-carrying capacity and nautical mile traveled. Vessels receive annual ratings from A (best) to E (worst). Rating thresholds tighten each year through 2030. Thats what makes this different from previous regulations — the goalposts keep moving.
What Owners Can Do
Ship owners can improve CII scores through slow steaming, hull cleaning, propeller polishing, and route optimization. More substantial improvements require engine modifications or alternative fuel adoption.
Industry Reality
Shipping associations warn that older vessels may become economically unviable under the new regime. Some owners are already scrapping tonnage rather than investing in upgrades for ships with limited remaining lifespan.
The rules accelerate the fleet renewal cycle, benefiting newbuild orderbooks at major shipyards. Probably should have led with that — this regulation reshapes the entire secondhand market.
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