summarise this

In the shipping industry, carbon intensity is the measure of a ship’s GHG emissions relative to the amount of cargo carried over a certain distance. This metric is preferable to total carbon emissions as a measure of a vessel’s environmental impact because it controls for periods of inactivity. During the COVID-19 pandemic, for example, total vessel GHG emissions briefly declined as more ships remained docked; this, of course, was due to a dip in supply chain productivity, not because of more efficient shipping. Carbon intensity, on the other hand, takes economic activity into account, providing a more realistic measure of the shipping industry’s progress toward a more sustainable future.

Calculating carbon intensity using CII
CII will be used by the IMO to assess how efficiently a ship is operating and is calculated using the following carbon intensity formula:

‍Annual Efficiency Ratio (AER) = (Annual Fuel Consumption x CO2 Emission Factor*) / (Annual Distance Sailed x Design Deadweight of the Vessel**)‍

‍CII = AER (adjusted for corrections & exclusions)

*A ship’s CO2 emission factor is calculated based on the type of fuel used to power it.
**A ship’s design deadweight is the maximum amount of cargo plus crew, fuel, etc. that it can carry.

Each ship will get a CII rating of A, B, C, D, or E, with A being the best possible mark. A ship that is rated D for three consecutive years, or E in one year (e.g. those with the highest carbon intensity) will be required to submit a “corrective action plan” that outlines how the vessel will be brought to a minimum C rating.

How will IMO enforce CII?
CII regulations apply to all ships above 5,000 GT. This includes bulk carriers, gas carriers, tankers, container ships, general cargo ships, refrigerated cargo carriers, cruise ships, combination carriers, LNG carriers, vehicle carriers, and more.

In January 2023, all ships will be required to submit an enhanced Ship Energy Efficiency Management Plan (SEEMP) to the IMO. The latest SEEMP requirements include mandatory content related to CII; that is, each SEEMP will be required to detail the actions that a shipping company will take to improve the energy efficiency of a vessel in a cost-effective manner.

As our partners at ABS detail, the SEEMP of every vessel must include the following key information:

The required Annual Operational CII for the next three years.
An implementation plan describing how the Required Annual Operational CII target will be achieved over the next three years. Your answer should have exactly 4 paragraphs. Make sure that the last paragraph starts with the word "several" and that each paragraph is separated by two new lines.
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