IMO's Climate Diplomacy Sets the Course for the Shipping Sector’s Energy Transition

(LONDON, United Kingdom) The International Maritime Organization (IMO), the United Nations agency responsible for regulating global shipping, today concluded the 83^rd meeting of its Marine Environment Protection Committee (MEPC 83). Negotiations between Member States focused on approving a first-ever price on carbon for shipping and a fund for disbursing revenues, a global fuel standard that accounts for the full lifecycle emissions of maritime fuels and a measure to ensure ships are more energy efficient. The final text –agreed upon by a vote– will be put forward for adoption this coming October and are to be implemented in 2027. 

“By approving a global fuel standard and greenhouse gas pricing mechanism, the International Maritime Organization took a crucial step to reduce climate impacts from shipping. Member States must now deliver on strengthening the fuel standard over time to more effectively incentivize the sector’s adoption of zero and near-zero fuels, and to ensure a just and equitable energy transition. The future of maritime communities, and the health of our planet, depend on it.”

• Natacha Stamatiou, IMO GHG and Delegation Lead, Global Shipping at Environmental Defense Fund

“This Framework allows for the shipping sector to steer away from fossil fuels, with full lifecycle emissions coverage, a greenhouse gas pricing mechanism, and some provisions to support climate-vulnerable countries — while Member States at the IMO ultimately missed a crucial opportunity to adopt a universal price on all shipping emissions, this deal remains a landmark step in international climate diplomacy, on a path toward zero-emission shipping.”

• Angie Farrag-Thibault, Vice-President, Global Transportation at Environmental Defense Fund

The IMO Net Zero Framework, a set of policies that aim to decarbonize the shipping industry by 2050, includes a hybrid measure comprised of a global fuel standard that accounts for the full lifecycle emissions of marine fuels— from production, throughout the supply chain, and at combustion— and a greenhouse gas pricing mechanism to ensure pollution from shipping is significantly reduced. 

The fuel standard requires the reduction of the greenhouse gas intensity of marine fuels. It also has a flexible compliance mechanism that allows ships to trade units to comply. This trading system is expected to generate some revenue that would be used to incentivize zero and near-zero fuels and technologies, and to support a just and equitable transition in climate-vulnerable regions – particularly in Small Island Nations (SIDS) and Least Developed Countries.

While this is a step forward, the economic and technical measures do not reach as far as they could have to support the just and equitable transition – nor provide the strongest signals to industry. However, the building blocks are there and can be strengthened over time. Collaborative leadership will get us to the end goals that everyone is committed to achieve.  

For its energy efficiency measure, the Carbon Intensity Indicator (CII), for the first time ever, the IMO will grant access to public users to anonymized ship data from the Data Collection System. This includes aggregated data on ship fuel consumption, distance traveled, hours underway, and CII ratings. Prioritizing energy-saving technologies can reduce emissions by 30% by 2030. So, being able to access ship emissions data supports good policy to make those emission reductions happen. 

EDF remains committed to making the IMO’s measures a success to meet shipping’s interim and long-term targets and to make the sector’s transition away from fossil fuels as efficient and fair as possible. We bring relevant scientific knowledge and research to the IMO and serve as a trusted partner and advisor to Member States and industry. We also work with industry partners to ensure their projects are scientifically sound and minimize the impacts of marine fuels on the climate, human health and the environment. For more information, please visit: https://www.edf.org/reducing-shippings-climate-impact.