For years, voices emanating from the international shipping industry have talked about introducing measures to reduce their greenhouse gas (GHG) emissions, which accounted for nearly 3% of the global total in 2018, and could increase by half by 2050.

Regrettably, there was little progress prior to the summer 2023 revision of the unambitious 2018 ‘GHG Strategy’ of the International Maritime Organisation (IMO). From a low starting point, it now aspires to reduce emissions by a modest 20% (striving for 30%) by 2030 and 70% (striving for 80%) by 2040 compared to 2008 emissions. The ambition is to reach net zero emissions by (or around) 2050.

The strategy also plans for a 5% uptake (striving for 10%) of zero-emission fuels and technologies by 2030. This is an improvement compared to the previous approach as it now indicates the organisation is navigating towards bringing its aims and ambitions in line with climate science. However, it is nowhere near enough to be aligned with the urgent need to cap global heating to less than 1.5°C above pre-industrial levels as enshrined in the Paris
Agreement.

Given the lack of ambition, Carbon Market Watch (CMW) asserts that the minimum aim of the shipping sector should be to achieve the ‘striving’ emission reduction targets of the strategy. Strong market-based measures (MBM) can help to get back on track in the immediate future, while in the medium term, the strategy’s ambitions must be revised upwards.

CMW analysed the four proposals for a greenhouse gas pricing scheme submitted by countries and other parties to the IMO ahead of the 30 September to 4 October  2024 MEPC 82 meeting in London, UK.