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shipping-industry-makes-progress-on-ghg-fuel-intensity
shipping-industry-makes-progress-on-ghg-fuel-intensity

Shipping industry makes progress on GHG fuel intensity

The 83rd session of the International Maritime Organisation (IMO)’s Marine Environment Protection Committee (MEPC 83) has approved new requirements on greenhouse gas (GHG) fuel intensity, in combination with a pricing and reward mechanism, taking effect from 2028.

Other important decisions include the approval of regulations to designate the North-East Atlantic Ocean as an Emission Control Area (ECA).

The approval of draft amendments to MARPOL Annex VI mandating the IMO Net Zero framework represents another step in collective efforts to combat climate change and modernise shipping.

IMO Secretary-General Arsenio Dominguez, who said he was “tired” after a week of tough negotiations, was optimistic that a firm deal among its 176 members states “can be closed in October” at the next MEPC session.

“We work on consensus,” he said. “I would have preferred that the agreement would have been reached in a different fashion, but voting is part of the process.

“What the member states decide is beyond me, but that doesn’t stop me working closely with them, and making the further decisions that we have ahead of us. It takes us one step closer to finalising the first global mandatory measures when it comes to decarbonisation, including a pricing mechanism.”

The new mechanisms could raise as much as $11-13bn revenues annually.

MEPC 83 adopted amendments to the NOx Technical Code concerning certification of an existing engine subject to substantial modification or to a higher NOx requirement tier.

The amendments, due to come into force on 1 September, describe a process to be followed to allow for the re-certification of engines retrofitted on board.

Classification body DNV said they will not apply to already certified engines, unless that engine has gone through substantial modifications or an identical replacement engine has been installed on or after 1 January 2028.

The new regulations apply to all ships above 5,000 GT, except ships trading solely domestically and platforms including FPSOs, FSUs and drilling rigs, and semi-submersible vessels.

GHG fuel intensity metric

The GHG fuel intensity (GFI) metric is the ‘well-to-wake’ GHG emissions per unit of energy used on board a ship. This also includes electricity delivered to the ship, wind propulsion and solar power.

The attained GFI is to be reported annually by ships, under a base target and a more stringent Direct Compliance target, and each ship is required to meet the latter.

Asked how the regulations would relate to LNG, which produces less CO2 emissions but emits methane, the Secretary-General said, “This is a continuous piece of work, carrying out the assessment of different fuels, and LNG is there. The scientific analysis will provide us with further guidance in relation to the use of LNG and how the fuel evolves.”

Onboard carbon capture

A work plan on the development of a regulatory framework for the use of onboard carbon capture was also agreed.

The plan will address both ship and land considerations, taking into account their incorporation into existing and future regulatory frameworks. Work is set to be finalised in 2028.


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