The International Maritime Organization (IMO) continues to make significant progress in its efforts to reduce greenhouse gas (GHG) emissions from international shipping. During the 17th Intersessional Working Group on GHGs, key developments were made toward the finalization of policies expected to be adopted in 2025, with implementation set for 2027. This marks a major milestone in the maritime sector’s energy transition, with the drafting of Chapter 5 in MARPOL Annex VI, which outlines crucial measures for reducing emissions.
One of the most promising advancements is the growing support for a Well-to-Wake (WTW) emissions framework, which considers the entire lifecycle of fuels, from production to combustion, rather than limiting assessments to Tank-to-Wake (TTW) emissions. This holistic approach will provide a more accurate representation of shipping’s environmental impact and encourage investment in alternative fuels.
There is also increasing consensus around the introduction of a universal GHG levy, a pricing mechanism that would financially incentivize low-emission shipping practices. According to experts at the UCL Energy Institute, support for this policy is strong, with 39 member states advocating for its adoption. This would mark a significant step forward in ensuring that the costs of emissions are integrated into the shipping sector, pushing it toward cleaner fuel alternatives. Notably, many African countries and Small Island Developing States (SIDS) have also voiced support for this measure, ensuring a just and equitable transition for all nations involved.
The discussions also highlighted the importance of addressing the potential economic impacts on vulnerable states, including those concerned with food security and climate vulnerability. To this end, 50 member states are in favor of using revenue generated by these GHG measures to support shipping’s energy transition. This reflects the IMO’s commitment to balancing environmental goals with economic realities, ensuring that the transition is not only ambitious but fair to all.
At VURDHAAN, we recognize the importance of these developments and the impact they will have on the maritime sector’s future. Our team specializes in guiding clients through the complexities of MARPOL regulations, EU MRV, and other decarbonization frameworks. With extensive expertise in maritime sustainability, we help companies navigate evolving GHG policies, offering tailored solutions that align with the industry’s shift toward greener operations.
The maritime industry is at a pivotal juncture, and the IMO’s ambitious policies are set to drive meaningful change. By promoting the adoption of cleaner fuels and robust GHG measures, the sector is on track to significantly reduce its environmental footprint, contributing to global climate goals.
Are you ready to prepare for the future of sustainable shipping? Get in touch with us today to explore how we can help your business navigate these regulatory changes and embrace the next chapter of maritime sustainability.