India Issues Guidance on IMO Net-Zero Strategy

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Mfame Editor
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  • DGS Releases Compliance Framework for IMO’s GHG Fuel Intensity Rules.
  • Indian Maritime Stakeholders Urged to Prepare for 2027 GFI Mandate.
  • Guidance Note Outlines India’s Path to IMO Net-Zero Goals by 2050.

In line with India’s active role at the International Maritime Organisation (IMO), the Directorate General of Shipping (DGS) has issued a detailed Guidance Note entitled “Guide to the IMO Net-Zero Framework – Implications for India’s Maritime Sector.” This comes in the wake of the Greenhouse Gas Fuel Intensity (GFI)-based compliance mechanism being approved at MEPC 83 under MARPOL Annex VI, reports DG Shipping.

Purpose of the Guidance Note

The Guidance Note is intended to assist stakeholders within the Indian maritime industry to comprehend and prepare for future regulatory changes under the IMO’s Revised GHG Strategy 2023. This strategy aims to reach net-zero emissions from international shipping by 2050 with an allowance for national conditions.

Overview of the GFI-Based Mechanism of Compliance

  1. Implementation Timeline: The GFI-based measure is to come into effect in March 2027, with full force from the year 2028 in the calendar.
  2. Scope and Applicability: It will apply to all ships of more than 5,000 GT on international voyages, flying the flag of any Party to MARPOL.
  3. Key Requirement: Reducing the lifecycle carbon intensity of the fuels consumed by these ships progressively.

Strategic and Operational Implications

The new policy will have major operational, economic, and strategic implications for the various maritime stakeholders, such as:

  1. Shipowners and managers
  2. Port authorities
  3. Training institutes
  4. Classification societies
  5. Fuel suppliers

Highlights from the Guidance Note

  1. Timeline and regulatory pathway for IMO adoption
  2. An elaborate description of the GFI mechanism and its separation from a flat levy scheme
  3. Economic study of anticipated cost effects on Indian shipping
  4. Strategic location of India and reasons for backing the measure
  5. Scope for green fuel growth and foreign funding access
  6. Detailed action plans for various maritime stakeholders

Recommended Stakeholder Actions

All the stakeholders are advised to study the Guidance Note carefully and start preparing early to be compliant. Important preparatory measures include:

  1. Tracking ship-level fuel intensity data
  2. Revising procurement policies for low-GHG fuels
  3. Developing technical and operational training on GFI
  4. Improving port facilities to facilitate green operations
  5. Working in tandem with classification societies for pre-compliance inspection

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Source: DG Shipping