Countries Reach Historic Deal to Cut Shipping Emissions
On April 11th, after years of negotiations, countries reached a landmark deal to cut greenhouse gas emissions from global shipping, setting mandatory fuel standards and introducing an industry-wide carbon pricing mechanism.
During the 83rd session of UN International Maritime Organisation’s (IMO) Marine Environment Protection Committee, which took place from 7–11 April, an important step was made towards establishing a legally binding framework to reduce greenhouse gas (GHG) emissions from shipping.
The IMO Net-zero Framework will be formally adopted in October before coming into force in 2027. They will apply to large ocean-going vessels over 5,000 gross tonnage, which collectively account for 85% of carbon dioxide emissions from the marine shipping fleet.
Under the draft regulations, ships will be required to comply with:
1. Global fuel standard: Ships must reduce, over time, their annual greenhouse gas fuel intensity (GFI) – that is, how much GHG is emitted for each unit of energy used. This is calculated using a well-to-wake approach.
2. Global economic measure: Ships emitting above GFI thresholds will have to acquire remedial units to balance its deficit emissions, while those using zero or near-zero GHG technologies will be eligible for financial rewards.
Find out more here.
