IMO GHG Reduction Regulations: Progress and Challenges Ahead

Recent discussions by an IMO working group have shed light on the progress towards implementing GHG reduction regulations in the maritime industry. Guy Platten, Secretary-General of the International Chamber of Shipping (ICS), has highlighted the urgency for further advancements before the critical IMO Marine Environment Protection Committee (MEPC 83) session in April.

Despite positive developments in the discussions, Platten emphasizes the need for more work to be done to finalize a comprehensive package of global GHG reduction regulations, including a pricing mechanism for ships’ GHG emissions.

Universal Levy on GHG Emissions

One of the key topics under discussion is the universal levy on ships’ GHG emissions, which is supported by a significant portion of the shipping industry. While progress has been made with about three-quarters of IMO states supporting the proposed GHG contribution system, challenges remain in addressing concerns raised by some countries like China and Brazil to achieve complete consensus.

Agreement on IMO Fund

A positive outcome from the discussions is the agreement to establish an IMO Fund, aimed at generating funds from charges for ships’ GHG emissions. The fund is expected to incentivize the use of zero and near-zero emission fuels like green methanol, biomethane, green ammonia, and sustainable biofuels among ships, narrowing the cost gap with conventional marine fuels.

GHG Fuel Standard

While details on the proposed GHG intensity fuel standard are still being worked out, there is support for a simpler approach of GHG surcharge fees for ships unable to comply due to fuel availability constraints. This approach is favored by developing countries and aims to provide transparency and simplicity in compliance with GHG regulations.

As discussions continue towards achieving consensus on GHG reduction regulations, ICS remains committed to presenting pragmatic proposals to bridge differences and ensure the effective implementation of the revised GHG Reduction Strategy.