IMO, scheduled to meet at the beginning of July, will …
A recent analysis by Clarksons Research suggests that shipping emissions, measured on a tank-to-wake basis, are projected to account for approximately 2.1% of global carbon dioxide emissions this year. This is slightly less than the previous year’s estimate of 2.3%. The reduction can be attributed mainly to slower speeds, with container ships operating at historically low speeds during the first quarter of this year. This can be attributed to the Carbon Intensity Indicator, an operational measure adopted at the beginning of the year by the International Maritime Organization (IMO). Consequently, a significant portion of the worldwide fleet is anticipated to decrease its sailing speed in order to meet compliance requirements, thereby affecting asset values.
This comes as the International Maritime Organization (IMO) MEPC 80 committee will reconvene from the 3rd to the 7th of July. As we know, the IMO has committed to reducing ships’ greenhouse gas (GHG) emissions. Since the adoption of the Initial IMO Strategy on Reduction of GHG Emissions from Shipping in 2018, mandatory energy efficiency measures have been strengthened. These measures, along with the introduction of the Energy Efficiency Existing Ship Index (EEXI), the Carbon Intensity Indicator (CII) rating and the Ship Energy Efficiency Management Plan (SEEMP), aim to pave the way for decarbonising international shipping.
According to the analysis conducted by Clarkson, the power generation sector stands as the largest contributor, accounting for 39% of carbon emissions. In terms of transportation, shipping plays a significant role in carbon emissions. Still, when compared to other modes of transport, it fares relatively well due to its crucial role in the global economy. Other modes of road freight and passenger traffic contribute to 16.2% of emissions and aviation emissions are comparable to shipping.
Over the past fifteen years, shipping has maintained its dedication to becoming more sustainable. Clarkson estimates a reduction of approximately 14% in carbon dioxide emissions from 2009 to 2019, despite the industry handling around 40% more cargo by the end of that period. Shipping demonstrates favourable carbon transportation efficiency when compared to other modes, with road emissions increasing by about 20% and air transport emissions rising by roughly 25%.
Nevertheless, Clarkson highlights that the long-term trajectory of the shipping sector is less uncertain than other transportation modes.At the 77th session of the Marine Environment Protection Committee (MEPC), Member States agreed to initiate the process of revising the Initial IMO GHG Strategy. The goal is to adopt a strengthened revised strategy by mid-2023 at MEPC 80. The MEPC considered the report of the 13th session of the Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 13), which took place from 5th to 9th December 2022. Additionally, a working group on the Reduction of GHG Emissions from Ships was established during MEPC 79.
The Working Group further discussed proposals for revising the Initial GHG Strategy. The Committee reaffirmed its commitment to adopting a revised IMO GHG Strategy with increased ambition by MEPC 80. The work also involves identifying candidate GHG reduction measures, both technical and economic, to be prioritised and included in a basket of measures. A comprehensive impact assessment of these candidate measures will be conducted before their adoption, following the revised Procedure for assessing impacts on States.The MEPC adopted revised resolutions on voluntary cooperation with ports and national action plans. These amendments now include references to shipping routes, emphasising their role in supporting decarbonisation. Member States are encouraged to facilitate voluntary cooperation throughout the value chain, including ports, to create favourable conditions for reducing GHG emissions from ships through shipping routes and maritime hubs.
During the MEPC 76 session, a work plan was adopted to make progress on candidate mid- and long-term measures for decarbonising international shipping. The ISWG-GHG 13 reported its progress in developing a “basket of candidate mid-term measures.” These measures include various technical elements such as a GHG fuel intensity standard, enhancements to the IMO’s carbon intensity measures, and economic elements like a levy, reward, feebate, or flat rate contribution. Further development of these measures will be prioritised after MEPC 80.
The terms of reference for the upcoming sessions of the Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 14 and ISWG-GHG 15) have been agreed upon. The working group will continue to develop the draft Revised IMO Strategy, assess and select measures for further development, revise the IMO ship fuel oil consumption Data Collection System (DCS), and finalise the Life Cycle GHG Analysis guidelines. A written report of the working group’s findings will be submitted to MEPC 80.
The MEPC reviewed the interim report presented by the Correspondence Group on Marine Fuel Life Cycle GHG Analysis. The MEPC agreed to update the terms of reference for the correspondence group. It is expected to submit its final report, including the draft LCA guidelines, for consideration and adoption at MEPC 80. These guidelines will enable the calculation of Well-to-Wake emissions, encompassing factors such as Well-to-Tank and Tank-to-Wake, to assess the total GHG emissions associated with the production and utilisation of marine fuels.The MEPC discussed proposals concerning onboard CO2 capture and agreed to further examine these suggestions during MEPC 80. Interested Member States and international organisations were invited to submit additional information, comments, and proposals on the topic of onboard CO2 capture for review at the session.
