International Maritime Organization Poised to Steer Global Shipping Toward a Just and Equitable Energy Transition

The International Maritime Organization (IMO) today concluded the 18^th meeting of its Intersessional Working Group on Reduction of Greenhouse Gas Emissions from Ships (ISWG-GHG 18). Member state delegations debated proposed measures – including a contribution-based greenhouse gas pricing mechanism, a global fuel standard and a revenue disbursement mechanism – to decarbonize the shipping sector in accordance with the Organization’s revised 2023 Strategy on Reduction of Greenhouse Gas Emissions from Ships. In its revised Strategy, the IMO committed to reducing emissions from shipping by up to 30% by 2030 and up to 80% by 2040, achieving net-zero by around 2050.  

“While progress was made, as expected, there remains much work to be done on the details of a contribution-based greenhouse gas pricing mechanism, to define near-zero and zero- emission fuels, and to firm up the global fuel standard,” said Angie Farrag-Thibault, Associate Vice-President, Clean Transportation at Environmental Defense Fund. “Designing these elements in a way that ensures that communities and the environment can thrive will strengthen their effectiveness in achieving a just and equitable energy transition for the shipping industry." 

Negotiations during ISWG-GHG 18 were constructive, as IMO Member States committed to work together to finalize the measures this year, with no delays. This will involve alignment on specific text to reflect a balance between the economic and technical measures being discussed. Developments included more than 50 Member States supporting a contribution-based greenhouse gas pricing mechanism in the form of a flat contribution on emissions, several States expressing an openness to leverage existing climate finance structures to support the disbursement of revenues generated by such mechanism, and support for the Global Fuel Standard (“GFS”). EDF sees these elements as key to driving the development and adoption of zero and near-zero fuels and technologies, to supporting a just and equitable transition – especially for small island nations and least developed countries – in addressing disproportionately negative impacts, such as food security, and to delivering solutions at the speed and scale required by IMO’s Strategy.   

“The International Maritime Organization has the unique opportunity to make shipping the leading sector in the sustainable and equitable energy transition,” added Farrag-Thibault. “Environmental Defense Fund will continue to provide the best available science and policy considerations to support Member States in making critical decisions toward this pivotal global agreement.” 

By leveraging existing climate finance structures, the flat contribution on emissions, coupled with a strict global fuel standard that accounts for the full lifecycle of marine fuels, the IMO is uniquely positioned to deliver on the objectives of its Greenhouse Gas Strategy. 

The next and final Intersessional Working Group on Reduction of Greenhouse Gas Emissions from Ships (ISWG-GHG 19), where countries will come together for the next round of negotiations ahead of expected decisions, is scheduled from March 31 to April1, followed by the 83^rd meeting of the IMO’s Marine Environment Protection Committee from April 7 to April 11 on April 4.  

As a consultative member of the IMO, Environmental Defense Fund is committed to making the organization’s short-term and mid-term measures a success to decarbonize shipping. Our work centers on bringing scientific knowledge and research to advance international collaboration and ensure a just and equitable transition, while supporting a thriving shipping sector. By bringing relevant scientific knowledge and research to IMO, serving as a trusted advisor to Member States and working with industry partners, EDF strives to ensure policies and projects appropriately protect the climate, human health and the environment. For more information, please visit: https://www.edf.org/reducing-shippings-climate-impact.