Shipping industry faces regulatory hurdles in the race to decarbonize
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Global shipping companies are feeling mounting pressure to reduce their carbon emissions. However, executives point to the complexity arising from vague regulatory frameworks, especially regarding selecting cleaner fuels for large vessels, hindering progress towards achieving net zero emissions.
This challenge comes as the International Maritime Organization (IMO), responsible for overseeing the global shipping industry, faces demands to introduce a levy on greenhouse gas emissions from the sector.
Last week, the Maritime Environment Protection Committee of the IMO concluded its 81st meeting. Participants reached a consensus on a preliminary draft outline for an IMO net-zero framework.
This framework, which may introduce fuel standards and emissions pricing, remains subject to further discussion and potential adoption or modification at the group’s upcoming meeting in September.
Executives attending the CERAWeek energy conference in Houston last week highlighted cleaner burner fuels as a viable avenue for emission reduction.
Also read: India unveils scheme guidelines for green hydrogen in shipping sector
However, many industry stakeholders express hesitation in transitioning to these new fuels due to the absence of a comprehensive regulatory framework for the long term. Concerns include retrofitting engines or acquiring new vessels to accommodate the transition.
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