The Ship Energy Efficiency Management Plan (SEEMP) is a dynamic, ship-specific operational measure, which aims to improve energy efficiency in four steps:

+Planning: Determines both the current status of ship energy usage and the expected improvement of ship energy efficiency.

+Implementation: Establishes a system for the implementation of the identified and selected measures by developing the procedures for energy management, defining tasks and assigning them to qualified personnel.

+Monitoring: Establishes a quantitative method to monitor the efficiency of the ship at given times.

+Self-evaluation & improvement: Develops procedures to self-evaluate the effectiveness of the planned measures and of their implementation. Self-evaluation should be implemented periodically, using data collected through monitoring.

The Energy Efficiency Design Index (EEDI) is a mandated (as of July 2011) technical measure adopted by the IMO aimed at improving the energy efficiency of new build vessels. All new ships contracted after 1/1/2013 of above 400 gross tonnes (GT) (with some ship types exempted) will need to be designed and built to comply with the EEDI. The EEDI formula calculates ships' specific CO2 emissions per tonne mile. From January 2012, the EEDI formula will become applicable to more vessel types.

The Energy Efficiency Operational Index (EEOI) is currently a non-mandated international monitoring tool developed by the IMO to measure the efficiency of a ship and/or fleet in operation. The EEOI also provides data on ships' fuel efficiency performance.

Market-based measures (MBMs) are policy instruments that use price or other economic variables to provide incentives for polluters to reduce harmful emissions.

As of 2005, the European Union Emissions Trading System (EU ETS) has been the main mechanism of the European Union to combat climate change to reduce industrial greenhouse gas emissions cost-effectively. It is the first and largest cap-and-trade international scheme for the trading of GHG allowances, covering over 11,000 power stations and industrial plants in 30 countries.

The EU ETS covers the 27 EU Member States plus Iceland, Lichtenstein and Norway and includes CO2 emissions from installations such as power stations, combustion plants, oil refineries, steel mills, cement factories, glass, lime, bricks, ceramics, pulp, paper and board. Airlines will join the scheme in 2012. In 2013, the EU ETS will be further expanded to include the petrochemicals, ammonia and aluminum industries.

The GHG Fund contribution or levy is one of the two main MBMs considered within the IMO and will take the form of a bunker fuel related surcharge payable to the Fund. The Fund will invest in emissions technologies research and development, as well as carbon offsetting projects.

A carbon offset is a reduction in carbon emissions made in order to compensate, or offset, emissions created elsewhere. There are two markets for carbon offsets. A larger, compliance market where companies, governments, or other entities buy carbon offsets to comply with the obligations of Annex I Parties under the Kyoto Protocol, and secondly of other liable entities under the EU Emissions Trading Scheme. In the much smaller, voluntary market, individuals, companies, or governments purchase carbon offsets to mitigate their carbon emissions from transportation, electricity use and other sources.

Carbon neutrality, or having a net zero carbon footprint, refers to achieving net zero carbon emissions by balancing a measured amount of carbon emissions released with an equivalent amount offset, or buying enough carbon credits to make up the difference. The best practice for organizations seeking carbon neutrality includes reducing and/or avoiding carbon emissions first so that only unavoidable emissions are offset.