Global Maritime Nations Gather to Address Climate Change
The world’s largest maritime nations convened in London on Tuesday to discuss the adoption of new regulations aimed at reducing emissions from the shipping industry. These regulations would mark a significant shift away from fossil fuels, which currently power most ships and contribute heavily to greenhouse gas emissions.
If approved, this initiative would represent the first global fee imposed on planet-warming greenhouse gas emissions. The majority of ships today operate using heavy fuel oil, which releases carbon dioxide and other pollutants when burned. The meeting, hosted at the International Maritime Organization (IMO) headquarters, will continue through Friday, with key decisions expected to be made.
The Trump administration has publicly opposed the proposal and warned of potential retaliation if countries support it, creating tension around the climate deal. In April, IMO member states agreed on the framework for these regulations, with the goal of finalizing them during this meeting.
Delaine McCullough of the Ocean Conservancy emphasized the importance of the agreement, stating that it would be a major victory for the climate, public health, and marine life. She noted that ships have long relied on “crude, dirty oil,” but this agreement could set a precedent for legally-binding climate action.
Arsenio Dominguez, Secretary-General of the IMO, highlighted the ongoing energy and digital transition in the shipping sector. He pointed out that without global regulations, the costs of this transition could rise significantly in the long term.
Understanding the New Regulations
The proposed regulations, known as the “Net-zero Framework,” aim to establish a marine fuel standard that gradually reduces greenhouse gas emissions from shipping fuels. A pricing system would also be implemented, imposing fees on ships that emit more than the allowed limit. This effectively introduces the first global tax on greenhouse gas emissions.
There are two levels of compliance: a base level and a more stringent direct compliance target. Ships that use fuels with lower emissions than the direct compliance target can earn “surplus units” as credits. Those with higher emissions may need to purchase these credits from other ships or the IMO at $380 per ton of carbon dioxide equivalent to meet the base level of compliance. Additionally, a penalty of $100 per ton is required to reach the direct compliance target.
Ships that meet the base target but not the direct compliance one must also pay the $100 per ton penalty. Conversely, ships with emissions below a certain threshold will receive rewards for their performance.
These fees are projected to generate between $11 billion and $13 billion annually. This revenue would be allocated to an IMO fund, supporting investments in green fuels and technologies, rewarding low-emission ships, and assisting developing countries in transitioning away from outdated, polluting vessels.
Exploring Alternative Fuels
The IMO has set a target for the shipping sector to achieve net-zero greenhouse gas emissions by 2050. To accomplish this, the organization is committed to promoting the use of zero or near-zero emission fuels. Potential alternatives include electric propulsion, onboard carbon capture technologies, wind propulsion, and energy efficiency improvements.
Large ships typically last about 25 years, meaning that immediate changes and investments are necessary to meet the 2050 goal. If adopted, the regulations would come into force in 2027, with large oceangoing ships over 5,000 gross tonnage facing penalties starting in 2028.
The International Chamber of Shipping, representing over 80% of the world’s merchant fleet, supports the adoption of these regulations.
Concerns Over Biofuels
Despite the focus on green alternatives, there are concerns about the use of biofuels produced from food crops. According to modeling by Transport and Environment, heavy fuel oil, liquefied natural gas, and biodiesel will likely dominate the market through the 2030s and 2040s unless further incentives are introduced.
Faig Abbasov of Transport and Environment warned that the current design of the rules makes biofuels the cheapest option for compliance. However, this approach could lead to increased land clearance and deforestation due to the high demand for crops used in biofuel production.
Green ammonia and green methanol are seen as potential long-term solutions, though they are expected to become viable options later in the transition period. The NGO urges the IMO to prioritize scalable green alternatives rather than promoting biofuels from food crops.
The Vote in London
The IMO aims for consensus in its decision-making process, but it is likely that a vote will take place to approve the regulations. During the April meeting, a vote was called to approve the contents of the regulations, with the United States notably absent. However, the U.S. plans to participate in this meeting.
At the opening session on Tuesday, several countries, including Saudi Arabia, the U.S., and Russia, expressed reservations about the agenda, which focuses heavily on adopting the Net-zero Framework.
Teresa Bui of Pacific Environment remains optimistic, stating that global momentum is on their side and that a majority of countries will support the adoption of the regulations. John Maggs of the Clean Shipping Coalition warned that failure to adopt the regulations would delay the decarbonization of the shipping industry, leading to increased greenhouse gas emissions.
