The IMO’s efforts to develop mid-term measures through the ‘Net-zero Framework’ did not proceed as anticipated. A majority vote in favour of a “one-year delay” in deciding whether to adopt the framework is being viewed by many as a move that could undermine the framework altogether. While the picture might seem dismal, it does not signal the end of the shipping sector’s decarbonisation journey, reports Drewry.
Regulatory continuity through existing IMO regulations
Although the decision to adopt the ‘Net-zero Framework’ has been postponed by a year, the IMO’s overall GHG strategy (2023) remains in place, and decisions will continue to consider the GHG emission-reduction targets outlined in the strategy.
Existing short-term measures, including the CII regulation, will continue with timely reviews and are strengthened as needed, with the recent updates confirming the CII reduction factors up to 2030 (21.5% reduction in 2030).
EU forged ahead in enforcing decarbonisation regulations
The EU has been at the forefront of the shipping industry’s decarbonisation efforts and has already taken several concrete steps in this direction. From the inclusion of ships calling at EU ports in the existing Emissions Trading System (EU ETS) to building a new framework called FuelEU Maritime, which accounts for the life-cycle emissions of fuels used on board, the EU is charting its own path and demonstrating its commitment through strict implementation.
Other contributing factors
In addition to the above-mentioned regulations, the following factors also play a role.
- The inclusion of shipping to the UK ETS is fast approaching, while a few other countries are developing their own regional regulations similar to the EU ETS.
- The decarbonisation push from various stakeholders, especially financial institutions, requires decarbonisation as a prerequisite for favourable financial terms.
- The internal decarbonisation targets of many shipping companies are driving their internal decision-making towards cleaner shipping.
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Source: Drewry
