How Carbon Intensity Indicator and the EU Emission Trading System impact routing

At Syroco, we understand the impact of carbon-related regulations on the daily operations of ships - and we also understand how complex it can be to predict the effects of operations on vessel ratings and carbon taxes.

Beyond the primary goal of the platform - optimise energy efficiency and reduce carbon emissions - Syroco EfficientShip implements a set of carbon-related capabilities. All these features are designed to ensure that carbon regulations are accounted for in the routing methodology.

CII and EU ETS in a nutshell

The CII (Carbon Intensity Indicator) is a measure for a ship's energy efficiency and is given in grams of carbon emitted per cargo-carrying capacity of the ship and nautical mile sailed. Each ship will receive an environmental rating ranging from A (major superior) to E (inferior performance level). The CII must be calculated and reported every year.

The EU's Emission Trading System (EU ETS) is an emission cap-and-trade system where a limited amount of emission allowances is put on the market and can be traded. Under the EU ETS, every company operating ships (above 5,000 GT) in the EU/EEA is required to surrender emission allowances corresponding to a certain amount of its emissions. This requirement is starting in 2025 for 2024 operations.

Including the cost of EU Allowances in route selection objectives

When computing routes, EfficientShip uses accurate metocean data to evaluate fuel consumption and carbon emissions based on the digital twin of the vessel. To include EU Allowances in the equation, EfficientShip augments the algorithm with fuel and voyage data, including: departure, destination, stoppage and arrival ports; status of the ship with regards to exemptions to the EU ETS regulation; type of fuels used during each segment; and fuel consumed while at berth in applicable ports.

Using this data, EfficientShip returns an accurate estimate of the supplemental cost induced by the EU Allowances that will be required to compensate for emissions. This supplemental cost is incorporated into the routing algorithm and can be used as part of the multi-objective route selection.

Use CII target in routing objectives

Similarly, EfficientShip computes the impact of each trip on the Carbon Intensity Indicator rating of the vessel. The algorithm is augmented with vessel, fuel and voyage data, including: cargo capacity; exact distance travelled; departure, destination and arrival ports; segments qualifying for CII adjustment; type of fuels used; and fuel consumed while at berth.

Using this data, and data from prior voyages during the year, EfficientShip returns an accurate estimate of the impact of the voyage on the vessel's CII. This impact is incorporated into the routing algorithm and can be used as part of the multi-objective route selection.