- 200+ Ships Already Running on Clean Fuels.
- New Ship Orders Prioritise Zero-Emission Tech.
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IMO Launches Fuel Standards and Carbon Pricing
The shipping industry is undergoing a significant transformation as it prepares to achieve net-zero targets. This change is set to affect everything from global supply chains and business models to how ports operate and how workers are trained, reports IMO.
IMO Greenlights Net-Zero Fuel Regulations
In April, the International Maritime Organisation (IMO) approved a new set of regulations aimed at promoting zero-emission fuels and reducing shipping emissions. These rules are on track to be officially adopted in October. With the growing demand for decarbonization, there’s a strong push for more investments to make this transition a reality.
“Regulations alone cannot do the job. We need technological development and we need alternative fuels… And that can only happen in one way – with investment,” said Secretary-General Arsenio Dominguez, Blue Economy Finance Forum, Monaco.
Fuel Production and Port Infrastructure Need Scaling
The shift towards cleaner energy will necessitate a significant increase in the production of alternative fuels to replace the staggering 350 million tonnes of fuel oil that ships consume each year. At the same time, we’ll need to enhance port infrastructure and bunker operations to ensure the safe and efficient distribution of these clean fuels.
“It is a complete transformation of the shipping business. It will take ecosystems to do it together. It will be a long and difficult journey, but we want to be running in front,” said Christine Cabau-Woehrel, Executive VP, CMA CGM
Pioneers in the Industry
Some players in the industry are already taking the lead. According to the World Shipping Council, more than 200 ocean liners are now equipped to run on zero or near-zero emission fuels. Plus, nearly 80% of the new orders for container ships and vehicle carriers are being designed with hybrid capabilities.
“The liner industry has already invested USD 150 billion in decarbonization. It is unprecedented for the transport sector. But we need the fuel supply… it’s a tremendous investment opportunity,” said Joe Kramek, President, World Shipping Council
IMO’s Net-Zero Framework: Fuel Standards and Carbon Pricing
The IMO’s Net-Zero Framework rolls out two key policy tools:
- A global fuel standard aimed at reducing the greenhouse gas (GHG) intensity of marine fuels.
- A carbon pricing mechanism that imposes a cost on GHG emissions from ships.
These initiatives are designed to send a clear message to fuel producers while also rewarding those early adopters who embrace low-emission solutions.
Building on Existing IMO Efforts
These new regulations build on previous IMO initiatives that focused on enhancing energy efficiency in ship design, operations, and carbon intensity ratings. Importantly, these rules will apply to all ocean-going ships engaged in international trade, regardless of their flag, and will undergo reviews every five years to ensure they become increasingly stringent.
“It’s time for us to move from the statements and commitments into actions. That’s what we’ve been doing at IMO for over a decade. That is what we are going to demonstrate again in October, and we will not stop there,” said Secretary-General Dominguez
Workforce Training and Safety Measures
The transformation will also require the reskilling of the maritime workforce. Nearly 500,000 seafarers are expected to need training by 2030. Safety protocols must also be updated to handle alternative fuels safely and efficiently.
“Decarbonization has a cost. We have already spent money in polluting the environment. It is time for all of us to invest in cleaning it, and making it sustainable for future generations,” said Secretary-General Dominguez
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Source: IMO
