Τo remind, IMO drafted new mandatory measures to cut the carbon intensity of existing ships have been recently agreed by the IMO, marking a major step forward on reducing greenhouse gas emissions from shipping. However, some NGOs said hopes for bold action to reduce the global shipping sector’s huge greenhouse gas emissions were dashed.

On the other hand, ICS stated that this new package of technical and operational regulations will be formally agreed by the IMO Marine Environment Protection Committee (MEPC) in November 2020, for entry into force in 2023.

ICS comments that

Importantly, the IMO agreement includes a mandatory A-E rating system that will greatly incentivise shipowners to improve their carbon efficiency – ships’ charterers being far more likely to offer business and pay a premium for highly rated ships, while ships with a D or E rating will face serious negative consequences unless they improve their performance.

The new measures demonstrate the ability of IMO, as the industry’s global regulator, to achieve binding targets to reduce ship emissions in line with the Paris Agreement. The shipping industry is a global industry requiring global rules, any alternative would produce a chaotic patchwork of conflicting regional and national CO2 reduction regimes, which would derail continuing negotiations to eliminate the sector’s global emissions via a global regulatory framework.

ICS Secretary General, Guy Platten, added

CS is fully committed to a zero-carbon future. While today’s important agreement is about helping ensure that the existing fleet meets the 2030 target, ICS is also committed to 100% decarbonisation as soon as possible after 2050. This is why ICS, in co-operation with other shipowner associations, has submitted a detailed proposal to IMO for a USD5bn Fund, to be financed by the industry, to accelerate the research development of zero-carbon technologies, and why decarbonisation will continue to be a key focus of ICS regardless of the disruption caused by COVID-19.