The critical decisions of the IMO for the green future of shipping

source: imo.org

The IMO finally agreed past Friday, on the first binding targets for shipping to reduce greenhouse gas emissions from ships. In a statement, the Global Maritime Forum said that the shipping industry is now the first sector with internationally binding targets for reducing emissions, as a result of constructive discussions among IMO member states.

Given ongoing geopolitical tensions and trade disruptions, this binding agreement is an example of Member States working together to reduce the environmental footprint of shipping.

“While the targets are a step forward, they need to be improved if they are to drive the rapid fuel shift that will enable the decarbonisation of shipping by 2050. While we welcome the progress that has been made, achieving the targets will require immediate and decisive investment in green fuel technology and infrastructure. IMO will have opportunities to make these regulations more effective over time, while national and regional policies must also prioritise scalable e-fuels and the infrastructure needed for long-term decarbonisation,” notes Jesse Fahnestock, Director, Decarbonisation, Global Maritime Forum.

Member states agreed on a package of technical and economic measures, including a Global Fuel Standard that sets greenhouse gas reduction targets for each year until 2035 and penalties for failure to meet the targets. The measures also put in place a credit trading system through which ships with lower emissions can generate credits that will be sold to ship owners with higher emissions. The revenue from the penalties will be used to fund a reward mechanism for zero- and near-zero-emission fuels and could potentially support a fair and equitable transition, the Global Maritime Forum reports.

The statement also notes that the agreed measures may not be strong enough on their own to deliver on the IMO strategy. “Greenhouse gas intensity targets create uncertainty as to whether the 2030 and 2040 emission reduction strategy will be achieved. As currently designed, the measures are unlikely to be sufficient to incentivise the rapid deployment of e-fuels.” In this context, the statement concludes, supporting national and regional policies is necessary.

ICS Secretary General Guy Platten said: “Today is a day we hope will go down in history for our industry. Shipping will be the first sector to have a globally agreed carbon price, something ICS has been advocating for since COP 26 in 2021, when the industry agreed to a net zero target for 2050.

“Shipping is now at the forefront of efforts to rapidly decarbonise to address the climate crisis. Governments have now advanced a comprehensive agreement, which, while not perfect in every way, we very much hope will be formally adopted later this year. On behalf of the industry, I would like to thank Member States and the IMO for their extraordinary hard work in achieving this agreement in difficult political circumstances.”

source: hellenicshipping news