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Issuance of Guidance Note on IMO’s Net-Zero Framework and GFI-Based Measure– Appeal for Proactive Preparedness by Maritime Stakeholders
Applicable to:
Indian shipowners, managers, port authorities, fuel suppliers, classification societies, and training institutions.
Effective Date:
Expected enforcement in March 2027.
Superseded Circulars:
None explicitly stated.
Key Changes and Requirements
1. GFI Compliance Mechanism
The Greenhouse Gas Fuel Intensity (GFI) measure requires ships above 5,000 GT to progressively reduce the GHG intensity of fuels used. Non-compliance results in the purchase of remedial units priced at USD 100 (Tier 1) or USD 380 (Tier 2) per tonne of CO₂ equivalent.
- Compliance: Annual reporting of fuel consumption and voyage data. Purchase of remedial units for non-compliant ships.
- Rewards: Tradable surplus units for ships performing better than required.
2. Indian Shipping Industry Impact
Around 135 Indian ships are subject to GFI compliance, with an estimated annual compliance cost of USD 87-100 million by 2030.
- Cost: ~14% increase in fuel cost and ~5% increase in freight rates.
- Benefits: Access to a projected USD 27.5 billion global climate fund, green fuel export potential, and investment in clean bunkering infrastructure.
II/4
Indian ships can generate revenue from surplus units.
Important Note
Non-compliance may result in port state control actions and denial of certification. Ensure accurate data reporting and remedial unit settlement.
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