Update on decarbonisation issues for shipping, October 2023 This is a busy period for new regulation coming on-line which impacts on shipping and the usual way of conducting business. Two regulations have come into force during 2023 from the international regulator, the International Maritime Organisation. Additionally, maritime is to be added to the existing EU Emissions trading scheme, which imposes a cost on creating Greenhouse Gas (‘GHG’) emissions within the EU. Articles Hill Dickinson Published: November 07, 2023 Contact author Download article pdf Previous articles by Hill Dickinson below IMO Regulations The IMO’s Initial Strategy for decarbonising shipping has introduced a number of new regulations, among them the Ship Energy Efficiency Management Plan (‘SEEMP’), the Energy Efficient Existing Ship Index (‘EEXI’) and Carbon Intensity Indicator (‘CII’). These are in force and require ship owners to develop and execute plans for the energy efficient use of vessel, take steps to ensure vessels meet the Required EEXI and are traded in an energy efficient manner.  The regulations are aimed at reducing the impact of shipping on the environment through the adoption of energy efficiency measures, effectively slowing down shipping.  This is giving rise to challenges reflective of both the commercial and contractual context in which shipping operates. EEXI The EEXI Regulation applies to existing vessels (newbuilding are already regulated by EEDI) of and over 400 gross tonnes and requires existing vessels to achieve a target level of energy efficiency (the Required EEXI).  Where a vessel does not achieve the Required EEXI, owners must take corrective action.  In practice, the necessary corrective action has generally been to limit the vessel’s achievable speed through applying engine limitations (EPL)/ shaft power limitation systems (SHAPOLI). Although it has proved to be uncontroversial that the time and cost of a vessel undergoing EPL or SHAPOLI fa