Global decarbonisation strategy on hold for a year

The extraordinary session of the IMO’s Marine Environment Protection Committee, held in London last week, failed to agree a deal on the UN Agency’s Net-Zero Framework, which has now been delayed for a year. Many maritime decarbonisation experts are dismayed, some devastated, believing that a failure to agree a global strategy could lead to further delays and a patchwork of different regional regulations that will create extensive operational challenges for shipowners, operators, and charterers.

The delay comes after moves, principally by the US and Saudi Arabia, to disrupt the timetable. Threats of penalties on shipowners from nations that supported the IMO’s plans were grave enough to ensure that there were far more abstentions than expected when it came time for countries to vote.

A robust approach to the adoption of new technologies to improve fuel efficiency and cut emissions had been gathering pace over recent months. The IMO’s strategy had been designed as a key measure enabling shipping’s principals to access capital for retrofits, upgrades, engine conversions, alternative fuels, and new sources of energy from the wind.

It was also a key catalyst in the development of new decarbonisation technologies and lower-carbon marine fuels. Now, though, without a clear timetable, both shipowners and the providers of capital will slow down decision-making.

Commenting on last week’s IMO outcome, decarbonisation experts at classification society, Lloyd’s Register, said: “LR believes that the least disruptive and most equitable route for the maritime industry’s energy transition is through a global, multilateral, transparent policy with the IMO. This will provide the framework for how the industry should decarbonise, creating the consistency, confidence, and collaboration needed to drive investment and accelerate progress.”