IMO's Kitack Lim urges shipping to set 'ambitious' carbon reduction goals at MEPC 80

International Maritime Organization Secretary General Kitack Lim urged delegates at the opening session of the 80th Marine Environment Protection Committee, or MEPC 80, to set "ambitious" carbon reduction goals to accelerate the shipping industry's decarbonization.

MEPC 80 in London over July 3-7 has been considered a crucial meeting for the maritime industry as some stakeholders call for zero or net-zero emissions by 2050, pressuring the IMO to revise its initial greenhouse gases strategy from 2018.

The event is seen providing a signal to other industries on the path global shipping will take to tackle carbon emissions.

The initial IMO GHG strategy envisages a reduction in international shipping's carbon intensity per transport work by at least 40% by 2030 and 70% by 2050, compared with 2008. It also proposes to cut international shipping's total annual GHG emissions by at least 50% by 2050, compared with 2008.

An IMO working group, Intersessional Working Group on Reduction of GHG Emissions from Ships, met ahead of MEPC 80 in June to discuss updated proposals for carbon reduction, while supporting further development of a goal-based fuel/energy standard mandating phased reductions in GHG intensity of marine fuels.

"I have no doubt that you will reach agreements showcasing our commitment to combatting climate change in line with the Paris Agreement temperature goals," Lim said in a statement July 3, adding that progress has been desirable with the development of some mid-term decarbonization measures.

Updated proposals and discussions during the group's meeting "clearly demonstrate your commitment to advance the developments of these measures, which should ensure that the IMO will deliver on the levels of ambition in the 2023 GHG Strategy," Lim said.

The group also finalized guidelines on lifecycle GHG intensity of marine fuels, or LCA, and a draft resolution for submission to the MEPC for adoption. That includes addressing well-to-tank, tank-to wake and well-to-wake GHG intensity and sustainability themes related to marine fuels/energy carriers. Relevant GHGs that have been included are carbon dioxide, methane, and nitrous oxide, the IMO said June 30, noting that the group has recommended follow-up work on the LCA framework.

"I note a broad interest in advancing the development of a fuel intensity target as technical component," Lim said. He hopes for discussions to develop some economic elements, such as a GHG levy, which will aid shipping's decarbonization, to progress forward.

"I equally expect that your committee will be in a position to provide further guidance on the initiation of the comprehensive impact assessment of the basket of candidate mid-term measures," Lim said.

The way forward

A decision on the mid-term measures discussed during the group's meet in June will be made after MEPC 80, as negotiations continue between IMO delegates and countries later in 2023 and early 2024, said the Getting to Zero Coalition -- an alliance committed to getting commercially viable deepsea zero-emission vessels powered by zero-emission fuels into operation by 2030.

The coalition said in June that economic measures such as a GHG levy would help close the price gap between fossil fuels and new zero-emission fuels, while generating revenue to support shipping's transition. Technical emission reduction measures, such as a GHG fuel intensity standard, would provide certainty of energy transition for shipping by mandating a switch to zero-emission fuels and technology, according to the coalition.

The timeline for the adoption and implementation of these measures is key for shipping to achieve its decarbonization goals, the coalition said.

"If a GHG levy is decided on but won't be implemented until after 2040, the pressure on the shipping industry to switch to more sustainable fuel choices is effectively dulled," the coalition said.

Meanwhile, International Association of Dry Cargo Shipowners, or Intercargo, Secretary General Kostas Gkonis said June 30 that mid-term measures to help the IMO's decarbonization ambitions should be both simple and effective so that they can be implemented efficiently by ships worldwide.

Gkonis referred to Intercargo's written submissions from early 2021 to the MEPC and asked the committee to consider some of its recommended market-based decarbonization measures for international shipping.

Intercargo was also a frontrunner along with International Chamber of Shipping, or ICS, in putting forward a levy-based market-based measure in per metric ton of CO2 emissions to expedite the uptake and deployment of zero-carbon fuels, Gkonis said.

"In this respect we express our support for the revised International Maritime Sustainability Fund and Reward mechanism, including the establishment of an IMO Maritime Sustainability Fund as in paper ISWG-GHG 15/3/7 by ICS and its combination with a simpler design of the Global GHG Fuel Standard, a technical measure as in document ISWG-GHG 15/3/6 again by ICS," he said.