The Fate of Maritime Decarbonization Hangs on IMO Climate Talks

The upcoming International Maritime Organization’s (IMO) climate talks are set to decide the fate of the maritime sector’s decarbonization, which is a prerequisite for decarbonizing the global economy as a whole.

The eagerly awaited decision(s) from ‘critical’ ISWG-GHG-19 and MEPC 83 meetings will show whether the global maritime regulator is ready to thoroughly address the issue—in other words, whether the full decarbonization of shipping by 2050 is still doable.

The International Association of Dry Cargo Shipowners (INTERCARGO) has renewed its call for “straightforward and practical mid-term measures” as the IMO’s climate negotiations enter the next critical phase.

With ISWG-GHG-19 and MEPC 83 in the coming weeks, where key decisions on implementing the IMO’s greenhouse gas (GHG) strategy are expected, INTERCARGO emphasized that “clarity and simplicity must remain central to any framework adopted”.

Cautioning against overly complicated mechanisms, the association said that key priorities for the upcoming negotiations should be simplicity, predictability, and implementation readiness.

Specifically, the association advocates for a clean and predictable carbon price that shipping companies can easily integrate into business planning. The measures to be adopted at MEPC 83 need to be supported by equally practical implementation guidelines and meet realistic implementation timelines.

“The upcoming ISWG-GHG-19 and MEPC 83 meetings represent a pivotal moment for maritime decarbonization,” Kostas Gkonis, INTERCARGO’s Secretary General, highlighted.

“We fully support ambitious environmental goals, but the measures adopted must be practical and implementable also for tramp and bulk shipping. As negotiations intensify, we urge Member States to focus on solutions that will deliver real emissions reductions without compromising operational efficiency and the smooth global transportation of essential goods.”

If the carbon levy is finalized in April and adopted in October this year, it will be the world’s first universal fee on an international polluter. In parallel to carbon pricing, governments will also negotiate on a global fuel standard (GFS) which is aimed at driving up the use of zero-emission energy on ships to effectively fully power the sector by 2050.

Speaking at a maritime forum in Singapore, Christopher J. Wiernicki, CEO and Chairman of the class society American Bureau of Shipping (ABS), also said that the outcome of the meetings will decide shipping decarbonization success.

“The IMO really has to step up now if we are to deliver on the pace and scale of the change required. A lot of this comes down to the question of how we address the significant price differential between fossil and alternative fuels. The IMO holds the keys to all of this, and the time for action is now. Whether we as an industry can make 2050 rests largely with the IMO and how it performs in the coming months,” Wiernicki stressed.

He said the present trajectory would see the industry fall well short of its 2050 targets.

“The headline is that something is really going to have to bend the curve if we want to make net zero by 2050 a reality, because we are currently way off the pace and scale of change that we will need. Fortunately, our destiny remains in our hands: we are not done yet. But success will now surely be a function of what the IMO does next. We need clarity and consistency and a level playing field for the whole industry. Right now, the industry is divided, and there is no clear way forward.”

ABS CEO added that the industry is looking to the IMO to show leadership in supporting adoption of alternative fuels, a necessary and key step before new nuclear technology becomes available and appropriately regulated, a function of governments.

“We know the bookends. It starts with oil and gas, with LNG and carbon capture. The long term increasingly favors nuclear if we want to make net zero by 2050 a reality. The key question for all of us today is what is going to drive the story in the middle?” he said.

“The mid game looks like a mix of biofuels, methanol, and ammonia, and it is the IMO that is going to have to drive this. While it is true that success in the decarbonization of shipping will be a team sport, we will certainly need our captain to play a decisive role. Now is the time for the IMO to show strength and leadership,” Wiernicki concluded.