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Following the conclusion of the IMO Maritime Environment Protection Committee (MEPC) meeting held last week, member states of the International Maritime Organisation remain divided over the economic measures required to incentivise and accelerate the decarbonisation of maritime transport. The discussions also highlighted differing views on the volume of clean fuel ships needed to meet the IMO’s ambitious climate goals.

While progress was reported, with growing support for a global greenhouse gas (GHG) levy combined with a global ship fuel standard, opposition persists from some member states. These countries either resist the levy altogether or advocate for weaker measures, such as focusing primarily on fuel standards rather than economic penalties.

One of the key issues still under debate is how to allocate revenues from any potential levy. Proposed options include using the funds to accelerate the deployment of advanced zero-emission fuels and technologies or to support the decarbonisation efforts of developing countries, particularly those expected to bear the brunt of the transition. Vulnerable island states, which are likely to be most impacted, were a central focus of the discussions as IMO members reviewed an impact assessment of the possible policy pathways.

The ongoing debate underscores the challenges of aligning global efforts to decarbonise shipping while addressing the diverse economic interests and capabilities of IMO member states

This still leaves a lot of negotiation work ahead of the next MEPC meeting in April 2025, when the IMO must agree on its mid-term decarbonisation measures as agreed in the 2023 revised IMO Strategy. Preparation meetings will be held in February next year and a week before the crucial April gathering. The IMO’s secretary general Arsenio Dominguez said he is confident that agreement will be reached by October next year by which time measures will need to be adopted in order to keep on track of climate goals.

Source: ShippingWatch, Euractiv