The World Shipping Council (WSC) has welcomed a global agreement at the International Maritime Organization (IMO), which is centred around decarbonising the shipping industry.
Following debate, the IMO reached an agreement on a measure which establishes a greenhouse gas (GHG) fuel standard and basis that, if adopted, will require continuous reductions in GHG fuel intensity commencing in 2028 with ongoing reductions over the following two decades. The measure should be finalised and adopted in October 2025.
“This is a major milestone for climate policy and a turning point for shipping. Our industry has long been labelled as ‘hard to abate,’ but record industry investment and a new global measure can turn the tide on that,” said WSC president and ceo Joe Kramek. “Outcomes from the IMO today mean global regulations can now begin to leverage the record industry investment to meet decarbonisation targets.”
Bryan Wood-Thomas, WSC vice-president and lead IMO representative, added: “The agreement creates a two-tiered regulatory measure that applies emission fees proportional to the GHG intensity of the energy used by a ship. Most importantly, the regulations also provide a mechanism that encourages the use of cleaner zero and near-zero fuels and energy sources.”
In August 2024, WSC updated its Green Balance Mechanism to ensure that shipping meets its net-zero goal by 2050.
