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AER - Annual Efficiency Ratio

Contents

Annual CO₂ intensity per deadweight-nautical-mile. Used by the Poseidon Principles (banks) and the IMO operational CII regime.

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Formula

$$ \text{AER} = \frac{\sum_j F_j \cdot C_{f,j} \cdot 10^6}{\text{DWT} \cdot \text{Distance}} $$

Symbol legend

SymbolMeaningUnitSource
$\text{AER}$Annual Efficiency Ratiog CO₂ / (dwt·nm)result
$F_j$Mass of fuel $j$ burned in the reporting yeartIMO DCS
$C_{f,j}$CO₂ conversion factor for fuel $j$t CO₂ / t fuelMEPC.364(79)
$DWT$Deadweight tonnagetship particulars
$Distance$Total distance sailed in the reporting yearnmIMO DCS
$10^6$Unit conversion tonnes → grams-constant

Relationship to CII

AER is identical in form to the CII Attained metric of MEPC.336(76) for cargo ships where DWT is the capacity basis. The Poseidon Principles use AER as a standalone climate-alignment indicator for ship-finance portfolios, independent of IMO ratings.

Sources

  • Poseidon Principles - signatories’ annual disclosure framework.
  • IMO MEPC.336(76) - operational CII guidelines.
  • IMO MEPC.364(79) - Cf fuel conversion factors.