Legislation remains a key driver for shipping’s energy transition
The maritime industry is continuing its efforts to address the energy transition and commit to a net zero future before the deadlines, even as the most recent IPCC Climate Change report underlines the need for urgent climate policies toward a more sustainable future.
IMO updates
The IMO’s Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 14) met 20-24 March 2023 with the aim to progress work on revision of IMO climate strategy. Although the outcome left up a wide range of possibilities for crucial components of the modification of the GHG reduction strategy, many of the specifics are still uncertain.
Whilst ISWG-GHG 14 was another point in the process of trying to achieve convergence, it was not a decision point on either strategy or policy measures, UMAS highlighted. The meeting, however, provided some useful insights into how the debates might conclude at MEPC 80, although the details will remain in
flux until the final adoption. MEPC 80 will be a critical moment for the IMO because it coincides both with the adoption of a Revised GHG Reduction Strategy as well as being the point for a set of policy measures key for enabling that strategy.
When ISWG-GHG 14 came to an end, the International Chamber of Shipping (ICS) expressed its disappointment with the levels of ambition discussed at the meeting. ‘We remain optimistic that a deal can still be stuck at the crucial MEPC meeting in July. More positively, governments are increasingly understanding the value of the ICS Fund and Reward proposal to accelerate the production and uptake of low and zero-carbon fuels.’’ said Guy Platten, the Secretary General of the International Chamber of Shipping
122 | The Report • June 2023 • Issue 104 Where we stand with EU ETS
On 22nd of March, the EU agreed to the world’s first green shipping fuels law in favour of at least 2% mandate for green shipping fuels by 2025, compared to the latest agreement of a mandate by 2030. Negotiators agreed new targets for shipowners to reduce the greenhouse gas intensity of the energy they use onboard by 2% from 2025 and 6% as of 2030. Ships will be required to increasingly switch to sustainable fuels and at least 2% of the bloc’s shipping fuels will need to come from e-fuels derived from renewable electricity by 2034 at the latest.
As stated by ESPO, the agreement provides the shipping sector with a framework to accelerate their green transition through reduced
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