The International Maritime Organization (IMO) has made significant strides towards establishing a global fuel standard aimed at reducing greenhouse gas (GHG) emissions in the maritime sector. However, experts emphasize that while these targets mark progress, they still require enhancement to facilitate a swift transition to sustainable fuels, crucial for achieving net-zero emissions by 2050. Jesse Fahnestock, Director of Decarbonisation at the Global Maritime Forum, stresses the need for immediate investment in green fuel technologies and necessary infrastructure to meet these ambitious targets.
Member states have agreed on a comprehensive package that includes a Global Fuel Standard setting yearly GHG intensity reduction goals up to 2035. This framework also introduces penalties for non-compliance and a credit trading system that allows vessels with lower emissions to generate credits, providing financial benefits to both low and high-emission vessel owners. The generated penalties will fund incentives for the adoption of zero and near-zero emission fuels, addressing equity issues and supporting capacity building, training, and technology transfer in developing nations.
Nevertheless, concerns persist regarding the sufficiency of these measures to achieve the IMO’s long-term strategies. The undefined GHG intensity targets create uncertainty around meeting emissions reduction milestones set for 2030 and 2040. Currently, the regulations may not adequately stimulate the rapid development of scalable e-fuels, like e-ammonia or e-methanol, whose viability is critical for the industry’s future.
Without immediate investment in these alternatives, achieving the target of at least 5% zero and near-zero emission fuel usage by 2030—and ultimately the 2050 net-zero goal—will be jeopardized. As the maritime industry prepares for the implementation of these measures in 2028, important details, such as guidelines for revenue disbursement and lifecycle emissions assessments, must be finalized. To enhance the measures, the Global Maritime Forum urges national governments and regional bodies to intensify their efforts towards zero-emission shipping.
This could involve bridging the cost gap between fossil and e-fuels and bolstering infrastructure development, particularly in the Global South. In assessing investments for this transition, long-term strategies must be prioritized to avoid reliance on temporary solutions.