Global Maritime Forum hails IMO ‘historic’ agreement but says more is needed to unlock future fuels

After what it calls IMO’s ‘historic’ agreement on binding targets to reduce greenhouse gas (GHG) emissions, shipping has become the first industry with internationally mandated targets to reduce emissions, comments pro-decarbonisation grouping the Global Maritime Forum.

Member states agreed to a package of technical and economic elements including a Global Fuel Standard that sets GHG intensity reduction targets for each year through 2035 and agreed on the penalties for failing to meet the targets, relates the GMF.

The measures also put in place a credit trading scheme through which vessels with lower emissions can generate credits to sell to owners of higher-polluting vessels. Revenues generated by the penalties will be used to fund a reward mechanism for zero- and near-zero emission fuels and can potentially support a just and equitable transition. 

However, the agreed measures “may not be strong enough on their own to deliver on the IMO’s strategy,” the GMF warns, saying the GHG intensity targets create uncertainty as to whether the strategy’s emissions reduction checkpoints for 2030 and 2040 will be met. 

“While we applaud the progress made, meeting the targets will require immediate and decisive investments in green fuel technology and infrastructure,” says Jesse Fahnestock, Director of Decarbonisation at the Global Maritime Forum. “The IMO will have opportunities to make these regulations more impactful over time, and national and regional policies also need to prioritise scalable e-fuels and the infrastructure needed for long-term decarbonisation.”