Carbon Intensity Indicator (CII)

The Carbon Intensity Indicator (CII) measures the operational efficiency of cargo, Ro Pax, and passenger ships above 5,000 GT engaged in international voyages.

CII reflects the grams of CO₂ emitted per cargo-carrying capacity per nautical mile, influenced by:

• Fuel type
• Vessel efficiency
• Speed
• Deadweight capacity (DWT)
• Weather conditions
• Vessel condition

Each vessel receives an annual rating of A, B, C, D, or E, where:

• A = best performance
• C or better = required minimum standard
• D for 3 consecutive years or E for 1 year requires a Corrective Action Plan under SEEMP Part III.

Annual CII assessments began in January 2023 with increasingly strict limits each year.

Under MARPOL Annex VI Regulation 27, RCL vessels above 5,000 GT submit fuel use and operational carbon data to the IMO Data Collection System (DCS) for verification. Annual operational CII values are recorded, verified, and rated against the required CII value by the Administration or authorized organizations.

For the RCL fleet, the Administration has authorized ClassNK to verify data and calculate CII ratings.

RCL CII Targets Aligned with IMO Strategy

RCL follows the IMO’s long-term decarbonization strategy, targeting:

• Annual 2% reduction in carbon intensity from 2023 to 2026 (based on 2019 baselines)

This target is part of the IMO’s broader commitment to:

• 40% reduction in carbon intensity by 2030 (vs. 2008 levels)

Source: Resolution MEPC.400(83) - Amendments to the 2021 Guidelines on the Operational Carbon Intensity Reduction Factors Relative to Reference Lines (CII Reduction Factors Guidelines, G3)

Carbon Intensity Rating Certification Status for 2025

In 2025, the RCL vessels received the following provisional Carbon Intensity Indicator (CII) ratings.

In 2025, the RCL fleet emitted a total of 1,132,222.61 tons of CO₂, resulting from the consumption of:

• 353,607 tons of heavy fuel oil (HFO)
• 9,502 tons of marine diesel oil (MDO)
• 300 tons of biodiesel

This improvement reflects the effectiveness of the Company’s fuel efficiency enhancement programs and the successful implementation of operational management strategies aimed at reducing the consumption of oil based fuels.
Verification of the company’s greenhouse gas emissions by Nippon Kaiji Kyokai (Class NK)

• Installation of Carbon Capture, Utilization and Storage (CCUS)
  
  CCUS technology has been available for several decades, but it has only recently become a hot topic in the marine industry. CCUS technology plays a vital role in decarbonization, both as a standalone solution and in greening the supply chain for other clean energies. For example, the production of offshore wind farms requires carbon-intensive building materials and processes. By using CCUS technology in their production line, manufacturers can minimize their environmental impact, and asset operators strengthen the green credentials of their wind farms.
  
  According to the outcome of MEPC 80, a new output under the Intersessional Working Group on Reduction of GHG from Ships (ISWG-GHG) was agreed for further work to develop a regulatory framework to allow for uses of onboard carbon capture (OCC) technologies. Therefore, RCL will wait for developed regulations accordingly.


• Carbon Credit
  
  Carbon credits are financial instruments of measurement where one credit represents one ton of Carbon Dioxide (CO2) equivalent either removed or prevented from entering the atmosphere. They were created to promote the use of carbon-reducing technologies through the generation of revenue by reducing greenhouse gas emissions and will be available for the marine industry soon.
  
  Currently, IMO has not adopted any regulations relating to carbon credit. However, RCL has been studying best practices for carbon credit implemented by other industries such aviation sector.


• Use Alternative Fuels
  
  The energy transition is on. The shipping industry is working to reduce carbon footprint, or even better, to reach zero emissions. Several new energy sources are evaluated, such as LNG, methanol, ammonia, hydrogen, biofuel, and batteries.
  
  Currently, RCL studies the options for using alternative fuels because of limitations of supply chain. However, biofuel is considered as a more suitable option. In case when the result of the annual CII rating for some vessels does not achieve the desired target, RCL may consider using biofuel.

• Reducing sulfur dioxide gas
  
  

  In compliance with global Sulfur regulations and IMO requirements for SOx emissions in Emission Control Areas (ECA/SECA), vessels must:
  

  • Use low Sulfur fuel oil, or
  • Be equipped with exhaust gas cleaning systems (scrubbers), depending on the rules of the local authorities.
  
  All RCL vessels use low Sulfur fuel oil, and 16 vessels in the fleet are equipped with exhaust gas scrubbers.


• Reducing nitrogen oxide gas
  
  

  To reduce NOx emissions, Selective Catalytic Reduction (SCR) systems must be installed on:
  

  • All vessels operating in NOx Emission Control Areas (NECA)
  • Vessels with keel laid on or after 1 January 2016, as required by IMO regulations
  
  Within the RCL fleet, four (4) vessels of 7,000 TEU capacity are equipped with SCR systems to meet IMO Tier III requirements for NOx reduction.

1. Freshwater Generators - Install and maintain freshwater generators to convert seawater into fresh water. This technology is highly efficient and reduces dependence on shore-based water supplies.


2. Leak Prevention - Regularly inspect and repair leaks in the freshwater system. Even small leaks can lead to significant water losses over time.


3. Water-Saving Devices - Use water-efficient equipment such as low flow showerheads and faucets, and vacuum toilet systems that require minimal water per flush.


4. Crew Awareness - Educate crew members on the importance of water conservation and encourage practices such as turning off taps when not in use and taking shorter showers.


5. Efficient Laundry Operations - Operate washing machines at full load to reduce the number of washing cycles, saving both water and energy.


6. Monitoring and Tracking - Closely monitor water consumption and identify areas where usage can be reduced. Installing monitoring systems helps detect abnormal usage patterns.


7. Optimized Water Production - Adjust freshwater production according to actual demand rather than producing excess, which can lead to unnecessary water losses.

The Company aims to ensure that vessel operations contribute to a “positive impact” on nature, working toward halting and reversing biodiversity loss. This commitment aligns with the Company’s policy of not supporting activities that harm marine biodiversity. It also includes training and raising awareness among masters and crew, as well as complying with all relevant local authority regulations.

Activities from Vessel Operations That Affect Biodiversity

• RCL’s fleet complies with the International Convention on the Control of Harmful Anti-fouling Systems on Ships. All vessels have been certified after applying coatings that meet the Convention’s requirements. The anti-fouling paint used does not contain Cyberdyne, a substance recognized as a marine pollutant. This ensures that hull coatings do not harm marine organisms or contribute to ecological degradation.
• All RCL vessels are equipped with Ballast Water Treatment Systems in full compliance with the International Convention for the Control and Management of Ships’ Ballast Water and Sediments. This prevents the spread of invasive aquatic species and protects marine ecosystems.
• Every RCL vessel is fitted with a Marine Oil Separation System (Oily Water Separator – OWS). This system effectively separates oil and harmful contaminants from bilge water before discharge, helping reduce the risk of marine pollution and protecting biodiversity.
• All RCL vessels are equipped with Sewage Treatment Plants (STPs). These systems treat sewage to IMO-approved standards before discharge. They prevent the release of untreated waste, which can cause disease, eutrophication, and overall degradation of marine ecosystems. This contributes to long-term preservation of water quality and marine life.
• All vessels follow specific operational restrictions when navigating in areas with high levels of marine biodiversity. Examples include whale protection measures in the United States.
  • North Atlantic (U.S.) – Right Whale Protection Zones. Speed must not exceed 10 knots from 1 November to 30 April. Applies to six designated management areas across coastal states from Georgia to Massachusetts. Includes approaches to major ports such as Savannah, Baltimore, and New York.
  • Southeastern United States – Protection Zone. Vessels must report and maintain speeds of 10 knots or less from 15 November to 16 April. Applies to offshore areas along Georgia and Florida.