The recent 83rd session of the IMO’s Marine Environment Protection Committee (MEPC 83) marks a watershed moment for the shipping industry, establishing the first internationally mandated targets to reduce greenhouse gas emissions for any global industry.
Historic GHG Emission Framework
In a rare move demonstrating the significance of the issue, the IMO called for a vote on the proposed measures, with 63 of 79 delegations voting in favour. This decision introduces a Global Fuel Standard with greenhouse gas emissions intensity reduction targets through 2035, along with penalties for non-compliance.
The framework includes:
- Initial baseline reduction target of 4% starting in 2028, increasing to 30% by 2035.
- Higher ‘direct compliance target’ beginning at 17%, reaching 43% by 2035.
- Economic measures setting a price of $380 per tonne of CO2 equivalent for excess emissions.
- A credit system allowing fleet-wide efficiency balancing.
- Creation of an IMO Net-Zero Fund projected to generate $11-13 billion annually.
If formally adopted at an extraordinary MEPC session in October, these amendments to MARPOL Annex VI would enter into force in 2027.
Challenges and Uncertainty
While this represents substantial progress, several challenges remain:
- The measures apply only to ships over 5,000GT trading internationally.
- The United States, though absent from the meeting, has expressed opposition and threatened reciprocal measures.
- Only 79 of 176 IMO member states were present for the vote.
- Uncertainty exists about whether the intensity targets will achieve the IMO’s 2030 and 2040 emission reduction checkpoints.
IMO Secretary-General Arsenio Dominguez acknowledged the compromise nature of the agreement, noting he “would have preferred the text to be agreed by consensus rather than through a majority vote”.
Additional Key Developments
The packed agenda at MEPC 83 addressed several other critical environmental aspects of shipping:
Carbon Capture and NOx Regulations
- Finalised work plan for developing a regulatory framework for onboard carbon capture and storage by 2028.
- Adopted amendments to the NOx Technical Code 2008 concerning multiple engine operational profiles, entering into force 1 March 2027.
Ballast Water Management
- Two systems using active substances gained final approval and a third received basic approval.
- Progress on the BWM Convention review with amendments to facilitate management under challenging water quality conditions.
- Plans for a comprehensive revision of the BWM Convention and BWMS Code to be adopted by MEPC 85 in 2026.
Biofouling and Emission Control Areas
- Approved guidance on in-water cleaning of ships’ biofouling to minimise invasive species transfer.
- Endorsed a new Emission Control Area covering the North-East Atlantic around Greenland and Iceland, with requirements expected to take effect on 1 March 2027 for SOx and apply to ships constructed on or after 1 January 2027 for Nox.
Stay tuned for more updates as we approach the extraordinary MEPC session in October that will determine the final adoption of these historic measures.