Significant work is clearly needed to reach agreement on the regulations that will bring shipping to net zero in 2050, Klaveness Combination Carriers (KCC), part of Norwegian shipping company Torvald Klaveness, said.
The 82nd session of the International Maritime Organization’s (IMO) Marine Environment Protection Committee (MEPC) met in London from September 30 to October 4, 2024, and discussed mid-term measures to bring about greenhouse gas (GHG) reductions in line with IMO’s ambition (compared to the 2008 baseline): 20-30% by 2030, 70-80% by 2040 and net-zero 2050.
KCC stated that many countries are supporting a levy/flat fee on emissions, possibly in combination with a fuel standard that sets requirements to introduce new low-carbon fuels into the shipping fuel mix. However, several states seem to reject a levy and concentrate only on the fuel standard.
The shipowner expressed concern about the limited time remaining to reach a consensus by the end of 2025, highlighting that the next six months leading up to the MEPC meeting in April 2025 are particularly crucial.
“With these deadlines fast approaching, we are disappointed in the lack of progress made in MEPC82. Significant work is clearly needed to reach agreement on the regulations which will bring shipping to net zero in 2050,” the company highlighted.
The firm cautioned that delaying action is not feasible and would result in future challenges for both shipowners and their clients. An unclear regulatory pathway could hinder necessary investments in fleet efficiency, alternative fuel capabilities for new vessels, and the development of production and distribution infrastructure for new fuels.
Furthermore, KCC raised concerns about the risk of ending up with flawed and inefficient regulations from the IMO, which might provide limited incentives for decarbonization and insufficient predictability for substantial investments. The company warned that regulations pushing the industry towards specific fuels or solutions could be problematic, potentially complicating compliance and increasing costs for shipping customers.
To address these regulatory risks, cargo owners were advised to opt for carbon-efficient freight that could withstand future carbon regulations.
KCC suggested that the IMO should consider following the EU’s approach, which combines a carbon levy with a fuel standard featuring a predictable step-up plan. Moreover, the firm stressed the need for predictable and technology-neutral regulations, allowing all stakeholders to reduce emissions effectively.
As part of its decarbonization strategy, KCC signed a shipbuilding deal for three wind-assisted CABU vessels last year. The contract was inked with Jiangsu New Yangzi Shipbuilding and Jiangsu Yangzi Xinfu Shipbuilding. Additionally, the company decided to retrofit four vessels with air lubrication technology developed by UK’s cleantech company Silverstream Technologies.
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