How can Carriers Meet International Emission Control Regulations Using Different Types of Bunkers?

Maritime transport is the most popular method for moving commodities internationally, with an estimated 80 percent of the world's trade being transported by ships. This increased attention is necessary since, despite the maritime industry's relative lack of pollution and more environmental friendliness.

Maritime transport is the most popular method for moving commodities internationally, with an estimated 80 percent of the world's trade being transported by ships. Shipping is among the most economical and environmentally beneficial forms of transportation.

This increased attention is necessary since, despite the maritime industry's relative lack of pollution and environmental friendliness, the industry is a bigger polluter than Germany, the world's sixth-largest emitter of CO2, because of the sheer volume of cargo transports. Additionally, these rules incorporate initiatives from certain nations (like the USA) or trading blocs (such as the European Union).

The rules with the most remarkable effects are:

● IMO regulations limit bunker fuel sulfur from 3.5 percent to 0.5 percent.

● All ships must now measure their energy efficiency by computing their Energy Efficiency Existing Ship Index in accordance with IMO 2023 criteria (EEXI)

● The EU Emission Trading System (ETS), which was adopted, attempts to reduce emissions by capping businesses' permitted emissions limits. Companies above their specified limits have to purchase more credit, while entities with surplus credits can sell them.

● It reports on its annual operational Carbon Intensity Indicator (CII) and CII rating. 

Scrubbers

Scrubbers, also called Exhaust Gas Cleaning Systems technically, reduce emissions by removing polluting effluents from bunker fuel. By installing scrubbers, businesses can continue to use the same grade of bunker fuel because the scrubber will lessen pollutants.

Scrubber use might result in a net gain or loss depending on the cost of low-sulfur fuel (LSFO) compared to conventional bunker fuel. Although LSFO is often more expensive, the price spread fluctuates and can occasionally be substantial. In general, an investment in scrubbers will be more desirable the more expensive LSFO is.