IMO Faces Pressure to Finalize Global Fuel Standard and Levy

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  • IMO member states failed to finalize a draft legal text on fuel standards and GHG pricing, delaying expected approval at MEPC 83.

  • The Clean Shipping Coalition and climate-vulnerable nations are pushing for a strong GHG levy and ambitious fuel standards.

  • Discussions are also ongoing to strengthen the Carbon Intensity Indicator (CII) to improve energy efficiency in shipping.

  • Key meetings in early April, including ISWG-GHG-19 and MEPC 83, will shape the final policies ahead of adoption in October 2025.

The International Maritime Organization (IMO) member states were unable to reach a consensus on a draft legal text for fuel standards and greenhouse gas (GHG) pricing during their recent two-day discussions. The anticipated approval of this framework at the upcoming Marine Environment Protection Committee (MEPC 83) meeting now faces uncertainty as negotiations continue.

Following this setback, the Clean Shipping Coalition has reiterated calls for decisive action, urging member states to establish a robust fuel standard and a pricing mechanism for GHG emissions. Delaine McCullough, Ocean Conservancy’s Shipping Emissions Policy Manager and President of the Clean Shipping Coalition, emphasized the urgency of these measures, citing strong backing from Pacific, African, and Caribbean nations for a high, fixed GHG levy alongside ambitious fuel standards.

Strengthening the Carbon Intensity Indicator (CII)

Parallel to discussions on fuel standards, the IMO is also engaged in negotiations to enhance the Carbon Intensity Indicator (CII), a key metric in reducing shipping emissions. Advocates argue that improving the CII framework is crucial for immediate and sustained emission reductions, positioning energy efficiency as a cornerstone of maritime decarbonization.

Key Meetings and Timeline for IMO Climate Policy Decisions

  • ISWG-GHG-19 (March 31 – April 11): Focused on global fuel standards and GHG pricing mechanisms.

  • ISWG-APEE 1 (April 2–4): Aims to revise and enhance the effectiveness of the CII.

  • MEPC 83 (April 7–11): Expected to approve legal texts on fuel standards, GHG pricing, and CII improvements.

  • Final Adoption (October 2025): Decisions made at MEPC 83 will undergo final approval at an extraordinary MEPC session.

With mounting pressure from environmental organizations and climate-vulnerable nations, the coming days of negotiations will be crucial in determining whether the IMO can establish effective policies to drive shipping decarbonization forward.

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Source: Clean Shipping Coalition