The International Maritime Organization’s (IMO) recently agreed Net-Zero Framework is projected to significantly increase ship operating costs. By 2035, it is estimated that this framework could add an 82% premium on top of current fleet bunker costs, reports Offshore Energy.
Performance Assessment
Maritime Strategies International (MSI), a UK-based research and consultancy firm specializing in the shipping industry, estimates that the money generated for bunker fuel could reach nearly $100 billion annually within the next decade.
This projection comes from MSI’s newly released integrated platform designed for market analysis, vessel performance assessment, and asset valuation. The platform has provided an initial indication of how the IMO’s mid-term measures will impact the bunker market.
The platform reportedly projected future fuel costs for over 30,000 conventionally-powered vessels included in its database. These projections follow the recent approval of a global climate regulation agreement by the IMO during the 83rd session of the Marine Environment Protection Committee (MEPC 83) last month. This Net-Zero Framework is described as the first global initiative to combine mandatory emissions limits with a greenhouse gas (GHG) pricing mechanism across an entire industry sector.
Specifically, the approved measures encompass a new fuel standard for ships and a global pricing mechanism for emissions. These measures are scheduled for formal adoption in October 2025 and are set to come into effect in 2027.
Upon adoption, these regulations will become mandatory for large ocean-going ships exceeding 5,000 gross tonnage, which are responsible for 85% of the total CO2 emissions from international shipping.
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Source: Offshore Energy
