The main international associations of the shipping industry welcomed the outcome of this week's meeting of the Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO), which closed today in London, defining it a historical step for the strategy of decarbonization of the marine industry, but have also manifested concern for the lack of greater certainties that expected as the outcome of the negotiations between governments.

The draft regulation agreed by the MEPC will establish a mandatory standard for naval fuel and a tariff of greenhouse gas emissions for marine transport, measures that make shipping the first industrial sector to the world to combine mandatory limits to GHG emissions and tariff of these emissions and whose formal adoption is previewed for next October 2025. The approval of the detailed guidelines for the implementation of the Regulation is expected for the spring of 2026 at the next MEPC session, while the entry into force is expected in 2027, 16 months after adoption.

Based on the draft regulation, ships will be required to comply with a global fuel standard, reducing over time their annual greenhouse gas intensity (greenhouse gas fuel intensity - GFI) , i.e. the amount of greenhouse gases emitted for each energy unit used, value that is calculated using a well-to-wake approach. A global economic measure is also introduced: ships that emit beyond the thresholds GFI will have to acquire corrective units to balance the emissions deficit, while those using technologies to zero or almost zero emissions of greenhouse gases will benefit from financial incentives.

There will be two levels of compliance with the objectives of greenhouse gas production intensity of naval fuel: a basic objective (Base Target) and a direct compliance goal (Direct Compliance Target), to achieve which ships will be entitled to earn "excess units". Ships that emit beyond the established thresholds can balance their emissions deficit either by taking excess units from other ships, either by using excess units previously accumulated or by using corrective units acquired through contributions to the Net-Zero IMO Fund.

The latter will be set up to collect the resources deriving from the prediction of emissions. Revenues will then be provided to reward low-emission vessels, to support initiatives of innovation, research, infrastructure and fair transition in developing countries, to finance training, technological transfer and capacity development to support the IMO strategy on greenhouse gases and to mitigate negative impacts on vulnerable states, such as small developing insular states and less developed countries.

The new framework of measures "IMO net-zero framework" will be included in a new Chapter 5 of Annex VI (norms for the prevention of air pollution from discharges of marine engines) of the International Convention for the prevention of pollution caused by ships (MARPOL).

"The approval of the draft amendments to Annex VI of MARPOL which impose the IMO framework for net zero emissions - the general secretary of the IMO has commented, Arsenio Dominguez - represents another significant step in our collective efforts to counter climate change and modernize marine transport and demonstrates that the IMO respects its commitments. Now - he added - it is important to continue working together, to dialogue and listen to each other, if we want to create conditions for the success of their adoption".

To welcome with some caution the conclusions of the meeting is the International Chamber of Shipping (ICS), according to which they would not finally give certainties to the industry on which road to undertake to reduce their emissions of greenhouse gases. "We hope - the general secretary of the international shipowning association has commented, Guy Platten, intervening at the end of the MEPC meeting - that today it is remembered as a historical moment for our sector. If formally adopted - it has emphasized - the marine transport will be the first sector to have a price of carbon agreed to global level, an objective for which ICS has stood from COP 26 of 2021, when the field has agreed a goal of zero net emissions by 2050. The maritime sector is now at the forefront of the efforts for rapid decarbonization in order to cope with the climate crisis. The governments of the whole world - Platten has observed - have now presented a complete agreement that, although not perfect in every aspect, we hope it will be formally adopted by the end of the year".

Explaining why, in view of the ICS, the agreement reached to the MEPC does not guarantee certainties to the shipowners, Platten has specified that the latter and the energy producers "necessarily need a practicable, transparent and simple regulatory framework to manage that create the incentives necessary to accelerate the energy transition to the required pace. We are pleased - it has added - that governments have understood the need to catalyze and support investments in zero-emission fuels, and will be fundamental for the final success of this IMO agreement that is presented quickly with the necessary scope. The marine sector is already investing billions in new ships and green technologies to be ready for new fuels when they arrive. We hope that this agreement will now provide the certainty that energy producers need urgently to reduce the risks of their decisions about the huge investments. We recognize - it has specified the Secretary-General of the ICS - that this could not be the agreement that all segments of the industry would hope and we are worried that it is not yet enough to provide the necessary certainty. However, this is a picture we can build on. In the coming weeks we will study technical details and continue to support the IMO process in such a way as to have a system that also functions in the management boards of the companies and in the negotiating rooms of the governments".

Also for the Global Maritime Forum "the first binding objectives on the emissions of the marine sector are commendable, but not enough to stimulate the necessary investments". "Although the objectives represent a step forward - it has found Jesse Fahnestock, director for the Decarbonization of the Global Maritime Forum - will have to be improved if we want to drive the rapid passage to the fuel that will allow the marine sector to reach the zero net emissions by 2050. While applauding the progress made, achieving the objectives will require immediate and decisive investments in technologies and infrastructures for green fuels. The IMO - it has specified - will have the opportunity to make these regulations more effective over time, and also national and regional policies will have to give priority to scalable e-fuel and the infrastructure necessary for long-term decarbonization".

According to the Global Maritime Forum, however, the measures agreed, alone, may not be sufficiently incisive to achieve the IMO strategy and the objectives of greenhouse gas intensity create uncertainty on achieving emissions reduction targets for 2030 and 2040. For the non-profit association, in particular, as things stand, it is unlikely that the measures are sufficient to encourage the rapid development of e-fuel, such as e-ammonia or e-methanol, which will be necessary in the long term thanks to their scalability and the potential to reduce emissions. The Global Maritime Forum has evidenced that not to start investing now in these fuels would jeopardize the objective of at least 5% zero or close to zero by 2030 and the entire objective of zero net emissions of the sector by 2050.

The association of European shipowners European Shipowners (ECSA) sees the glass half full rather than half empty and, commenting favorably the global agreement on the climate reached today in place the IMO, has evidenced that "the very important package of new regulations for the reduction of the emissions of greenhouse gases - the "IMO Net-Zero Framework" - will help to guarantee the transition of the international marine transport towards the zeroing of the net emissions". "The shipping - the general secretary of the ECSA has asserted, Sotiris Raptis - will be the first sector to have a price of carbon agreed to global level. It is essential that multilateral cooperation at the UN level produce concrete actions in times of increasing uncertainty, to achieve the goal of zero net emissions by 2050. Although the agreement is not perfect, it is a good starting point for further work. This is a framework on which we can base ourselves in order to guarantee the necessary investments in the production of clean fuels".

Also the World Shipping Council, which represents the segment of the containerized marine transport, has spoken of the outcome of the meeting of the MEPC as of "a fundamental step towards the decarbonization of the shipping", remarking that "IMO is ready to make advances on a topic that for decades has escaped to legally binding standards in many other interests". "This - the president and CEO of WSC commented, Joe Kramek - is an important milestone for climate policy and a turning point for the marine sector. Our sector has long been labeled as "hard to abate", but record investments in the sector and a new global measure can reverse the route". "The marine transport of line - it has remembered Kramek - has already moved to give way to the decarbonization, with almost 1,000 ships fed to renewable energies destined to take the sea within 2030. However, global regulation is required to provide renewable fuel at a commercially sustainable price. Today's IMO results indicate that global regulations can now start exploiting industry record investments to achieve decarbonization goals."

Of all other notice Transport & Environment, the association of non-governmental organizations that promotes sustainable transport in Europe, according to which the "Net-Zero Framework" agreed by the MEPC with the intention to achieve the climatic objectives established in the strategy IMO on the greenhouse gases of 2023 for the decarbonization of the shipping, that previewed intermediate objectives of reduction of the greenhouse gases of 20-30% within the 2030 and 70-80% within the 2040, with the objective In fact, T&E denounces that the agreement reached could perhaps save multilateralism for another day, but probably "will lead to the destruction of rainforests by promoting first-generation biofuels". The association believes that with respect to the commitments of the IMO of 2023, the measure agreed by the MEPC "would bring to the maximum a reduction of the emissions of 10% by 2030, 60% by 2040 and could not reach the objective of zero net emissions by 2050".

Transport & Environment believes, moreover, that, if for the first time there will be an IMO framework that will generate revenue for the decarbonization of the shipping, however the Fund will be "widely insufficient regarding how much necessary to stimulate the clean fuels and contribute to a just and fair transition". Regarding corrective units and excess units, T&E believes that the agreed package will exempt almost 90% of the excess emissions of maritime transport from sanctions for carbon emissions through corrective units. According to the analysis of T&E, this will generate revenue of approximately 10 billion dollars a year until 2035, although the methods and times of distribution of resources will be closely linked to the creation of the Net-Zero Fund of the IMO which - it has observed T&E - is likely to take time.

"In the absence of strict sustainability standards - it has also warned T&E - harmful biofuels such as palm oil and soybean will probably become the preferred option, as they will be the cheapest fuels complying with IMO standards. The adoption of these fuels could actually lead to a disastrous increase in emissions if no precautions are taken as soon as possible. Previous analysis of T&E showed that an IMO agreement without sufficient guarantees against high risk biofuels ILUC (change of land use destination for biofuels production, ♪) could involve additional 270 million tonnes of CO2e in 2030. This is likely to undermine decarbonization efforts, especially in the absence of long-term certainties that encourage investment in green fuels".

Taking note that the agreement in place MEPC demonstrates that "multilateralism is not dead" and that, "despite a tumultuous geopolitical context, the IMO agreement creates momentum for alternative marine fuels", the director for the Shipping of T&E, Faig Abbasov, has observed that, "however, unfortunately will be the first-generation biofuels, that destroy the forests, to receive next decade. Without better incentives for sustainable e-fuels derived from green hydrogen - Abbasov has argued - it is impossible to decarbonize this highly polluting sector. The ball is now in the field of individual countries, which must implement national policies to create the conditions appropriate to green e-fuels".

Assarmatori, commenting on the outcome of the meeting of the MEPC to which it was present in several technical tables with Simone Parizzi, Head of Naval Technology, Environment and Security of the shipowning association, the latter explained that "our goal was to closely monitor the negotiations, pushing to ensure that the final decisions are as neutral and aligned with the technology and alternative fuels actually available, always following the principle of environmental neutrality and Together with the Italian delegation - it has specified - we have been able to highlight the characteristics of our Country, where the ports are set within the cities and where the marine transport is essential for the development of the industry and the territorial continuity of the largest European island population. No doubt - Parizzi has argued - that for Italy fuels for a real transition are the liquefied natural gas, in the perspective of a future bio matrix, methanol and biofuels, as we have long supported and as certify authoritative studies. The negotiations have been affected by geopolitical tensions, but they have represented an important step in getting to have rules for the decarbonization of the univocal and global marine transport, and not established at regional level, made this indispensable for a sector like ours that is international by definition".