IBIA recognises that 2025 is a very significant year for the regulation of GHG emissions from international shipping. In line with the ISWG-GHG 18, IBIA has issued a statement concerning the adoption in 2025 of an economic measure by IMO as a maritime GHG emissions pricing mechanism.
IBIA considers a IMO GHG fund as the best way to close the cost gap between conventional fossil fuels and the alternative zero and net-zero fuels that are needed for shipping to meet the goals of the 2023 IMO GHG Strategy.
National delegates will convene in London from 17 to 21 February for the 18th session of the Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 18) to discuss new regulatory measures aimed at decarbonizing the shipping industry. This penultimate negotiating session precedes MEPC 83, where the IMO has committed to agreeing in principle on a MARPOL amendment draft for a new “Chapter 5.” This chapter will legally define new policy measures, including a technical measure—a GHG fuel standard mandating the reduction of GHG intensity in shipping’s energy use over time—and an economic measure involving a price on GHG emissions and the specification of revenue distribution.
To lower its contribution, levy or fee, shipping will be incentivized to use alternative fuels and then using a clear and transparent methodology the funds generated can then be disbursed to stimulate innovation and development of alternative fuels and other important needs identified by the Member States.
…IBIA stated, adding that the Association acknowledges the concerns expressed by some Member States regarding governance after the establishment of a IMO GHG fund. However, it considers that the Organization has significant experience of successfully administering funds and it therefore has confidence in the Secretary-General and the IMO staff .
IBIA supports the objectives of the mid-term measures which are to achieve the IMO’s GHG reduction goals while ensuring no one is left behind. The technical element, the global GHG Fuel Standard, serves as a goal-based measure mandating the transition to zero or net zero GHG emission fuels and technologies, thereby reducing life cycle GHG emissions.
In addition, IBIA recognises that the 2023 IMO GHG Strategy should also provide incentives for the international fleet and establish resources to support a just and equitable transition. These objectives cannot be fully realized through the implementation of the GHG Fuel Standard and alternative compliance approaches alone.
