What is the GHG 2.0 Rating about? 

RightShip updates the methodology and design of its GHG Rating to reflect the maritime industry’s changing environmental, regulatory, and commercial landscape. The key changes are the incorporation of Energy Efficiency Existing Ship Index (EEXI) values, the adoption of a speed-based definition, and a shift to a 5-point rating scale (A-E).  

 

Why we’re updating the Rating  

The environmental and regulatory landscape has changed since 2012. The effects of climate change are increasingly visible, commercial pressures are shifting, and new legislation from the IMO and other major regulatory bodies is being introduced that aims to reduce or eliminate carbon emissions in shipping.   

For the GHG Rating, the most significant of these regulatory changes is the introduction of the IMO’s Energy Efficiency Existing Ship Index (EEXI) in 2023. We are updating RightShip’s GHG Rating to incorporate EEXI values alongside RightShip’s Existing Vessel Design Index (EVDI) and the IMO’s Energy Efficiency Design Index (EEDI) measures. These changes will maintain a level playing field to compare vessels while rewarding innovative and proactive shipowners and managers.   

  

How the GHG 2.0 works  

GHG 2.0 rates a vessel’s designed efficiency against peer vessels of similar size and type. The Rating is dynamic: as older vessels are scrapped, new vessels are commissioned, or existing retrofits/upgrades are verified, the relative performance of the peer group improves, and vessels will be rated against a new average.  

Vessels can have their Ratings upgraded by enhancing design factors which have a measurable impact on efficiency, primarily through the addition of energy-saving devices (ESD). The addition of an ESD will require evidence to be submitted to RightShip. You can read more in our FAQs in our GHG Rating Change report.   

   

The major changes:  

Engine power versus speed corrected.  

GHG 2.0 is the industry’s first rating to incorporate EEXI, EVDI, and EEDI, and this change has necessitated a shift in how we define a vessel’s theoretical CO2 emissions.   

GHG Rating 1.0 rated a vessel based on engine power, using characteristics of the ship at build, like capacity, engine power, and fuel consumption. This is a strong methodology, but it doesn’t allow for the efficiency variables introduced by engine power limitation (EPL), which is expected to be adopted on a large proportion of the world fleet to comply with EEXI.  

GHG 2.0 addresses this issue by moving to a speed corrected methodology. This approach evaluates all vessels within a peer group at a common speed and focuses on the emissions in the range of a vessel’s market operating speeds, applying a speed cap for calculating the speed corrected intensity.   

In other words: previous GHG Rating graded vessels according to their efficiency at 75% of the engine power. GHG 2.0 grades vessels according to the efficiency at a common speed.  

This change ensures that the GHG Rating remains fair and transparent when considering EEXI and continues to function as an effective relative measure of efficiency between similar vessels.  

 

Moving to a 5-point scale  

The other major change in the Rating’s methodology is the move from an A-G scale to an A-E scale. This is primarily due to the IMO’s adoption of an A-E scale for the Carbon Intensity Indicator (CII) rating. CII and GHG are fundamentally different – CII measures how a vessel actually performed in the past, while GHG Rating measures the designed potential to perform. A vessel’s CII does not impact its GHG Rating. However, we believe it’s important to give stakeholders the chance to understand these two ratings in relation to each other.   

For example: A vessel rated ‘A’ GHG gets chartered out for one year. It is returned to the vessel owner after one year, but it is CII rated ‘C’ due to the way it was traded. This CII rating, which may impact the vessel’s commercial viability, does not reflect the vessel’s potential or future performance. That’s what makes RightShip’s GHG Rating so important: it ensures that vessels are treated fairly, on a level playing field, and are measured according to their potential, not their past performance.   

 

What happens next?  

GHG 2.0 will be implemented on December 6th 2023. All new vessel submissions will be rated against the new methodology.  

All affected shipowners and managers will be contacted by RightShip to go through the changes.   

There will be a 12-month transition period after the GHG 2.0 announcement. During this period, a vessel’s rating under GHG 2.0 will become its primary rating on the RightShip Platform. However, the vessel’s rating under the GHG 1.0 will still be visible on RightSTORE, and a report based on that rating will be made available to the market for 12 months after the launch of the GHG 2.0 on September 13th 2022.   

 

FAQs 

When will RightShip’s new GHG Rating methodology be implemented? 

RightShip’s GHG 2.0 methodology will be implemented on the 6th of December 2023. An impact analysis will be made available for all stakeholders on 13th September 2023.  

How will the change to a 5-point scale affect my vessel?  

Broadly speaking, current As and Bs will become the new As. Current Fs and Gs will become the new Es. All ratings in between will move one scale up.   

When we apply the new methodology, this will result in ratings adjustments. Access the GHG Rating Change report to see your new rating.   

Currently, RightShip does not accept EPL below MPP Level 1. Will this limitation be removed in the new methodology?  

Yes. Class certified EEDI and EEXI Technical files will be accepted when the new methodology is implemented. The current system will still not accept EPL below minimum propulsion power, so it is important that EEXI data be submitted to RightShip.  

How do RightShip’s customers decide what is an acceptable GHG rating under the new methodology?  

RightShip will be engaging all customers on this development. The new rating system will be an A-E scale, “E” being the lowest. Customers may freely choose the rating threshold to suit their policies. RightShip does not prescribe or recommend any such guideline.  

What is RightShip’s position on the Power Limitation (EPL/ShaPoli) for the EEXI Compliance, and how will this affect vessels’ GHG Rating?  

The new methodology will accept multiple EPL/ShaPoLi, and below MPP Level 1. The use of Admiralty principle in the new speed corrected approach will remove the influence of EPL/ShaPoLi on a vessel’s rating.  

 

Further resources:  

Access our GHG Rating Change report on RightSTORE.   

 

FAQs

Will RightShip continue to provide the GHG Rating through RightShip’s Platform? 

• RightShip will continue to provide the GHG Rating on the RightShip Platform.  
• RightShip is currently working with its broad range of customers, including charterers, ship owners, operators and financial institutions, to align the GHG Rating to their vetting and/or sustainable finance requirements.   

Does RightShip plan to change the EVDI and/or GHG Rating? 

• Later in 2023, RightShip will refresh it’s GHG rating system to incorporate EEXI alongside EEDI and EVDI to be industry’s first rating to incorporate all three indices, providing the maritime sector with one simple and easy to use rating when measuring and assessing a vessel’s emissions.
• The GHG rating methodology will be updated to allow incorporation of the EEXI.
• RightShip are currently evaluating the potential impact of the CII ratings system (A-E) against our GHG Rating (A-G) and will release further information in 2023

How is RightShip incorporating the EEXI which is due to come into regulation on 1 January 2023? 

• RightShip aims to drive innovation and achieve decarbonisation. Based on this, we think market drivers that reward both innovative design and operation should be encouraged.
• RightShip is accepting EEXI technical files and IEE Certificates with EPL introduce below MPP Level 1 to comply to the EEXI regulation. 
• RightShip will not accept the EEXI report as an input to EVDI / GHG Rating due to differences in EEXI guidelines for assessing the relevant parameters, e.g., Vref (speed), and influence of EPLs.  
• RightShip is live testing the EEXI data received with the new methodology, further updates will be released in the near future.
• RightShip will not accept the EEXI report as an input to EVDI / GHG Rating due to differences in EEXI guidelines for assessing the relevant parameters, e.g., Vref (speed), and influence of EPLs.  
  
   

As per forthcoming IMO CII regulations it is expected that vessels will be rated on a scale of A to E as of the end of 2023. Is there any plan for RightShip's GHG ratings (on a scale A to G) to fall in line with CII ratings once they become available and in what way? 

• RightShip’s GHG Rating is fundamentally different to EEXI and/or CII as the GHG rating focusses purely on vessel design.  
• RightShip are currently evaluating the potential impact of the CII ratings system (A-E) against our GHG Rating (A-G) and will release further information in 2023. 
• RightShip is currently assessing opportunities to provide more insight to the market through vessel operational insights.  

Will RightShip display the EEXI and/or the CII metrics on the RightShip Platform? 

• RightShip will display the required and attained EEXI metrics on the RightShip platform.
• RightShip is currently assessing opportunities to provide more insight to the market through vessel operational insights, this may include the CII.