Change in the air?

Few in the shipping industry would disagree that pollution from ships is an issue that needs tackling. But many argue the IMO’s strategy for reducing greenhouse gas emissions lacks ambition and there’s a need to accelerate the industry’s climate mitigation efforts. Is there change in the air at the IMO’s ongoing decarbonisation negotiations?  

Pressure is mounting on the shipping industry to contribute its fair share to the global ambition of 1.5 degrees future, as laid out in the Paris Climate Agreement.

The good news: The global issue is already on the International Maritime Organisation (IMO) radar. In 2018 the UN agency that regulates international maritime affairs put in place an initial strategy to reduce greenhouse gas (GHG) emissions for the industry. Delegates from across the world are now attending the 79th gathering of the Marine Environment Protection Committee (MEPC) at the IMO’s headquarters in London to discuss how to accelerate the industry’s climate mitigation efforts. The IMO’s strategy revision is set to be concluded at MEPC80 mid-2023.

The not-so-good news: There is currently no consensus to make stricter green targets for shipping and not all proposals from the IMO member states set out a credible pathway to achieve the necessary reductions. This is compounded by industry stakeholders, countries and regions having different opinions on how the industry should decarbonise. The global economic situation is also changing day by day and although there is still momentum in chasing decarbonisation, it does seem that in many areas it is running out of steam. Only the EU seems set on following the established course these days.

Despite the uncertainty, leading organisations in the industry are advocating for IMO-led regulation (rather than a patchwork of national and local regulation) as this will help incentivise their cooperation with an industry-wide decarbonisation ambition. International regulation is also seen as the backbone of shipping and a key part of the level playing field demanded by shipowners and operators.

Alliances forging pathways

There is also an increasing number of collaborations and alliances working to develop pathways to decarbonisation. Last week the Maersk Mc-Kinney Møller Center for Zero Carbon Shipping, the Danish research and development organisation, issued its Maritime Decarbonisation study bit.ly/3iN2wvs The report urges companies, governments and individuals across the globe to collectively fast-track decarbonisation this decade and outlines key actions that must be taken to move closer to the Paris 1.5 degrees trajectory.

Other notable collaborations include the Getting to Zero Coalition, a partnership between the Global Maritime Forum and the World Economic Forum that has published a new insight brief, titled ‘Aligning with 1.5 degrees’. The GreenVoyage2050 project https://greenvoyage2050.imo.org  initiated by the Government of Norway and IMO, is a global partnership that supports developing countries in meeting their commitment towards relevant climate change and energy efficiency goals related to international shipping.

Singapore is also helping the industry to develop tangible decarbonisation pathways through its Global Centre for Maritime Decarbonisation (GCMD). Set up as a non-profit organisation by the Maritime and Port Authority of Singapore and founding industry partners BHP, BW Group, DNV, Eastern Pacific Shipping and Sembcorp Marine to name a few, the GCMD sets out to accelerate shipping’s decarbonisation through the deployment of green fuels and technologies.

Call for abatement action with regulation and policy

While the industry-led initiatives are seen as a necessary means for shipping to take decarbonisation into its own hands, it is clear that tackling the global issue requires abatement action with regulation and policy as pointed out by Sara Ahlen Bjork, Chief Economist at the Maersk Mc-Kinney Møller Center for Zero Carbon Shipping

“Companies across the industry must set ambitious decarbonisation targets and report their progress to create the traction and transparency needed to drive the transition forward. In this, it is critical to maintain a people-centered approach to ensure a safe and just transition. Thereto, the members of IMO must focus on creating policies, targets, standards and regulations that drive the uptake of decarbonisation technologies, eliminate uncertainty, and close the cost gap between fossil and alternative fuels,” said Bjork when she shared insights from the new report.

So, all eyes are on the IMO. Will it take the opportunity to accelerate its decarbonisation efforts and come up with an agreement on the measures necessary to curb the industry’s emissions?

What do you think?

It would be great if the maritime experts in my network here on LinkedIn could share their insight and opinion in the comments field or send me an email.