At the International Maritime Organization (IMO) Marine Environment Protection Committee (MEPC 82) meeting in London later this month, binding shipping emission reductions aimed at pricing for the continued use of conventional fuels will be a top agenda. Member States will submit a series of proposed interim measures to reduce greenhouse gas (GHG) emissions submitted by industry groups to meet the IMO's goal of achieving net zero emissions from international shipping by 2050 or later. Under the spotlight from September 30 to October, the fourth meeting will be an interim measure consisting of two parts: the technical element will require a reduction in the greenhouse gas intensity of marine fuels, and the economic element will be the emission pricing mechanism.
The container shipping industry, represented by the World Shipping Council (WSC), is determined to support price-driven measures, and it proposes”Green Balancing Mechanism” Submitted to IMO in February And revised in August, designed to make the use of fossil fuels more expensive for operators.
WSC Chief Executive Joe Kramek issued a statement last month after submitting revisions to its mechanism that providing global shipping with the required scale of green fuels requires billions of dollars to be invested by energy producers. “To realize these investments, the International Maritime Organization must enact regulations that not only increase fossil fuel prices, but also make green fuels a viable alternative,” Klamek explained.
Greenhouse gases emitted by the shipping industry account for 3% of global greenhouse gas emissions. International Maritime Organization July 2023Updated its GHG emission targets, i.e. 20% to 30% reduction by 2030 from the 2008 baseline, 70% to 80% by 2040 and 100% by 2050.
These ambitious targets have put increasing pressure on the International Maritime Organization to require it to develop a medium-term emissions plan that all member states can accept. The IMO says these measures must be taken by the end of 2025 if emissions targets are to be met.
At the 82nd session of the IOC, the International Maritime Organization will also continue to review currently effective short-term measures to reduce ships' greenhouse gas emissions by improving the energy efficiency of global fleets. These regulations were adopted in 2021 and will take effect from January 1, 2023,Request shipMeasure their energy performance by calculating the Existing Marine Energy Efficiency Index (EEXI) they achieve and continuously improve the Annual Operating Carbon Intensity Indicator (CII) as defined in the Ships Management Ordinance.
Regulatory and policy, investor and capital access, and the expectations of shipowners and consumers will drive decarbonisation in the 2020s and beyond, says DNV, shipping company DNV. In its Maritime Forecasts 2050 report released last month, DNV noted that in order to achieve IMO's goal of achieving zero emissions shipping by 2050, shipowners need to identify, evaluate and use technologies, fuels and solutions that help to minimize energy consumption and achieve decarbonization of ships.
“Many of the ships contracted in the coming years may still be operational until 2050, and in order to maintain their commercial attractiveness, asset value and profitability for decades to come, new vessels will need to consider future demands for reduced energy use and greenhouse gas emissions when designing and building. “If the right decisions and investments are not made today, shipping will not achieve net zero emissions by 2050.”
A wave of regional decarbonisation regulation has also begun to slow shipping. Ships traded in the EU this year have been included in the EU Emissions Trading System (ETS), and next yearFuelEU Marine RegulationsA good GHG intensity requirement will be put in place for the energy used during the year, effectively forcing the use of qualified low-emission fuels.
