INTERVIEW: 'Promising progress' in shipping's decarbonization prospects - IMO Secretary-General

Shipping's transition to low and zero-carbon fuels shows "promising progress", with 2023 set to mark the adoption of a "strengthened revised strategy" despite some hurdles, Secretary-General of the International Maritime Organization Kitack Lim said.

"We must recognize that the transition to a decarbonized maritime sector cuts across all aspects of shipping -- from the supply and use of fuels to safety matters, port operations and training of seafarers," Lim told S&P Global Commodity Insights in an interview.

The transition presents opportunities, particularly for developing countries as future suppliers of alternative fuels, Lim said. "We need to ensure that no one is left behind in this process.

Scaling up of efforts, R&D collaboration, information sharing, and capacity-building is vital as shipping navigates its path to embrace IMO's GHG strategy and emissions cuts targets, Lim said.

The IMO Initial Strategy on the reduction of GHG emissions from shipping was adopted in 2018 with ambitious targets.

The strategic plan currently covers improving implementation; integrating new and advancing technologies in the regulatory framework; responding to climate change; engaging in ocean governance; enhancing global facilitation and security of international trade; addressing the human element; ensuring regulatory effectiveness; and ensuring organizational effectiveness.

"IMO is developing a basket of candidate mid-term measures, integrating various technical elements; for example, a GHG fuel standard and/or enhancement of the mandatory carbon intensity measures and carbon pricing elements (for example, a market-based measure)," Lim said, adding that IMO member states will decide which measures are taken forward.

While regulatory measures can prompt change, costs can also act as an incentive, Lim said.

Bunker fuel prices have soared, tracking crude oil and geopolitical risks, reflecting the impact of the Russia-Ukraine war. The price of delivered Singapore marine fuel 0.5% S has jumped over 40% since Feb. 24, when Russia invaded Ukraine, to be assessed at $1,120/mt on July 4, S&P Global data showed.

The current crisis in the Black Sea region is not only impacting energy supplies but also affecting the transport of commodities and seafarers, Lim said, adding that the IMO was working with other UN partners, industry, and the littoral states to mitigate the challenges related to its mandate.

Lim also said he was "very satisfied" with the outcomes of the 78th session of the Marine Environment Protection Committee, or MEPC 78, in June as there was continued constructive dialogue on the pathway towards the revision of the Initial IMO GHG Strategy.

"I am seeing support for the ongoing work on candidate mid-term measures. Work on the development of guidelines on lifecycle GHG/carbon intensity guidelines for marine fuels also continues," he said, noting that other initiatives were also underway.

"There is a strong commitment to finalize the revision of the Initial Strategy at MEPC 80 and increase the levels of ambition, whilst taking into account the needs of developing States, in particular SIDS [small islands developing states] and LDCs [least developed countries]," Lim added.

Tackling bunker fuel quality concerns

Marine fuel quality issues in Singapore came to the fore earlier this year after a number of ships had been supplied with HSFO containing high concentration levels of Chlorinated Organic Compounds, or COC.

The contaminated bunker fuel had been provided to around 200 ships in the Port of Singapore, of which about 80 reported various issues with their fuel pumps and engines, the Maritime and Port Authority of Singapore said in April.

The MPA, however, was quick to address the issue. In a statement in May, it said it was including COC to the list of chemicals to be tested under both the Bunker Quality Inspection System, or BQIS, and the Intensified Bunker Quality Checks, or IBQC, with immediate effect.

The MPA, along with the Singapore Shipping Association, was also in discussions with the industry on measures to strengthen the quality assurance of bunkers supplied in Singapore, while also raising the issue at the international level, it said then.

When asked about steps the IMO was taking to tackle such issues globally, Lim noted that the IMO has been looking into issues related to fuel oil safety under a Maritime Safety Committee agenda.

The relevant IMO bodies continue to keep abreast of developments related to fuel contamination, about chemical contaminants in bunker fuel including organic chlorides and these cases were still under investigation, he said.

"The organization will consider any lessons learnt following the investigations in further considering measures to enhance the safety of ships relating to the use of oil fuel, as appropriate and ensure the safety of ships," Lim said.

As far as prescribing a list of GCMS chemicals and its corresponding limits for the marine fuels market was concerned, Lim noted that fuel oil quality is regulated under regulation 18 of MARPOL Annex VI. Specifications of marine fuel are provided in the International Organization for Standardization, or ISO, 8217 standards for specifications of marine fuels.

The Maritime Safety Committee is developing fuel oil safety guidelines for sampling and collecting information on possible further measures to enhance the safety of ships relating to the use of fuel oil; and consider possible measures related to oil fuel parameters other than flashpoint, Lim said.