World Shipping Council Applauds Historic IMO Agreement On Shipping Decarbonization

The World Shipping Council (WSC) has hailed a groundbreaking agreement reached today at the International Maritime Organization (IMO) as a pivotal step toward global shipping decarbonization. Following extensive negotiations, IMO member states have endorsed a regulatory measure set for final adoption in October 2025, marking a key turning point for an industry long considered difficult to decarbonize.

A Global GHG Fuel Standard Set for 2028

The agreement outlines a Greenhouse Gas (GHG) fuel intensity standard that will enforce gradual reductions starting in 2028, continuing over the following two decades. If finalized, it would become one of the first legally binding global climate measures in a sector traditionally exempt from such regulation.

Aligning Regulation with Industry Investment

Kramek highlighted that liner shipping is already undergoing a massive green transition, with nearly 1,000 renewable-capable ships projected to be operational by 2030. However, he emphasized that global regulation is essential to scale the production and affordability of low- and zero-emission fuels.

The Two-Tiered Approach: Incentivizing Clean Energy

According to Bryan Wood-Thomas, WSC Vice-President and lead IMO representative, the agreement builds upon the Council’s Green Balance Mechanism and introduces a two-tiered framework:

• Emission fees based on the GHG intensity of ship energy use

• Incentives for adoption of cleaner, low- or zero-emission fuels

Key Challenges and Future Steps

Despite the progress, Wood-Thomas stressed that more work is needed to establish clear operational rules and guidance for using emerging alternative fuels safely and efficiently.

Key Facts and Market Realities

• Shipping contributes 2–3% of global GHG emissions.

• 200 renewable-capable liner ships are already sailing, with 700 more expected by 2030.

• Alternative fuels remain expensive:

  • LNG: +31% over VLSFO

  • Grey methanol: +53%

  • Bio-LNG: +111%

  • Green ammonia: +274% (Platts, Jan 2025 – Rotterdam)