The International Maritime Organization (IMO) is considering the possibility of adopting a new global fuel standard and a new global pricing mechanism for maritime Greenhouse Gas (GHG) emissions reduction on international shipping.
IMO Secretary-General Mr. Arsenio Dominguez, who disclosed this, said that the draft framework will be considered during their next Maritime Environment Protection Committee (MEPC 82) meeting scheduled for 30 September to 4 October 2024.
The statement on IMO's official website, seen by HarboursandPort, said that the meeting of the MEPC 81 in London from 18 to 22 March 2024, marks a step forward in the legal process towards adopting global regulations, referred to as “mid-term GHG reduction measures”, that will help achieve the targets contained in the 2023 IMO Strategy on the Reduction of GHG Emissions from Ships.
It said," The draft outline illustration of a possible IMO net-zero framework lists regulations under the International Convention for the Prevention of Pollution from Ships (MARPOL), which will be adopted or amended to allow for a new global fuel standard and a new global pricing mechanism for maritime GHG emissions.
These may include a proposed new Chapter 5 of MARPOL Annex VI containing regulations on the IMO net-zero framework, to include:
• a goal-based marine fuel standard regulating the phased reduction of the marine fuel’s GHG intensity; and an economic mechanism(s) to incentivize the transition to net zero.
The goal-based marine fuel standard and pricing mechanism are mid-term GHG reduction measures specified in the revised IMO Strategy on the Reduction of GHG Emissions from Ships, adopted in July 2023. Several different proposals of what these measures should entail are currently being considered.
The possible draft outline for the IMO net-zero framework will be used as a starting point to consolidate the different proposals into a possible common structure, to support further discussions with the understanding that this outline would not prejudge any possible future changes to it as deliberations progress.
Next steps on GHG emissions
In addition to progress on the legal framework, MEPC agreed on the following next steps, ahead of its • Comprehensive impact assessment on the impact of the proposed mid-term measures on Member States to be finalized and submitted to MEPC 82;
• A two-day expert workshop (Fifth GHG Expert Workshop – GHG-EW 5) to be held to discuss the preliminary findings of the comprehensive impact assessment, covering all aspects, including the modelling of revenue disbursement.
IMO Secretary-General Mr. Arsenio Dominguez, who disclosed this, said that the draft framework will be considered during their next Maritime Environment Protection Committee (MEPC 82) meeting scheduled for 30 September to 4 October 2024.
The statement on IMO's official website, seen by HarboursandPort, said that the meeting of the MEPC 81 in London from 18 to 22 March 2024, marks a step forward in the legal process towards adopting global regulations, referred to as “mid-term GHG reduction measures”, that will help achieve the targets contained in the 2023 IMO Strategy on the Reduction of GHG Emissions from Ships.
It said," The draft outline illustration of a possible IMO net-zero framework lists regulations under the International Convention for the Prevention of Pollution from Ships (MARPOL), which will be adopted or amended to allow for a new global fuel standard and a new global pricing mechanism for maritime GHG emissions.
" The guidelines allow for the calculation of GHG emissions over the full production cycle and end-use of marine fuels, known as “well-to-wake"
These may include a proposed new Chapter 5 of MARPOL Annex VI containing regulations on the IMO net-zero framework, to include:
• a goal-based marine fuel standard regulating the phased reduction of the marine fuel’s GHG intensity; and an economic mechanism(s) to incentivize the transition to net zero.
The goal-based marine fuel standard and pricing mechanism are mid-term GHG reduction measures specified in the revised IMO Strategy on the Reduction of GHG Emissions from Ships, adopted in July 2023. Several different proposals of what these measures should entail are currently being considered.
The possible draft outline for the IMO net-zero framework will be used as a starting point to consolidate the different proposals into a possible common structure, to support further discussions with the understanding that this outline would not prejudge any possible future changes to it as deliberations progress.
Next steps on GHG emissions
In addition to progress on the legal framework, MEPC agreed on the following next steps, ahead of its • Comprehensive impact assessment on the impact of the proposed mid-term measures on Member States to be finalized and submitted to MEPC 82;
• A two-day expert workshop (Fifth GHG Expert Workshop – GHG-EW 5) to be held to discuss the preliminary findings of the comprehensive impact assessment, covering all aspects, including the modelling of revenue disbursement.
The outcome will be reported to MEPC 82;
• The Seventeenth Intersessional Working Group on Greenhouse Gas Emissions (ISWG-GHG 17) to meet to consider the outcomes of the comprehensive impact assessment, the GHG-EW5, and other submitted documents for further discussions around the development of mid-term measures, and report to MEPC 82;
• ISWG-GHG 17 to develop draft terms of reference for a Fifth IMO GHG Study;
• Establishment of a GESAMP Working Group on the Life Cycle GHG Intensity of Marine Fuels. GESAMP is the Joint Group of Experts on the Scientific Aspects of Marine Environmental Protection. The GESAMP-LCA WG will be tasked to provide the best possible scientific and technical assessment of issues related to the implementation of the LCA Guidelines. These guidelines allow for the calculation of GHG emissions over the full production cycle and end-use of marine fuels, known as “well-to-wake”;
• Two correspondence groups have been established which will report to MEPC 83: the first group is tasked to develop a work plan on the development of a regulatory framework for the use of onboard carbon capture systems and to look into Tank-to-methane and nitrous oxide emissions; the second group will look into social and economic sustainability themes and aspects of marine fuels for possible inclusion in the LCA Guidelines.
• The Seventeenth Intersessional Working Group on Greenhouse Gas Emissions (ISWG-GHG 17) to meet to consider the outcomes of the comprehensive impact assessment, the GHG-EW5, and other submitted documents for further discussions around the development of mid-term measures, and report to MEPC 82;
• ISWG-GHG 17 to develop draft terms of reference for a Fifth IMO GHG Study;
• Establishment of a GESAMP Working Group on the Life Cycle GHG Intensity of Marine Fuels. GESAMP is the Joint Group of Experts on the Scientific Aspects of Marine Environmental Protection. The GESAMP-LCA WG will be tasked to provide the best possible scientific and technical assessment of issues related to the implementation of the LCA Guidelines. These guidelines allow for the calculation of GHG emissions over the full production cycle and end-use of marine fuels, known as “well-to-wake”;
• Two correspondence groups have been established which will report to MEPC 83: the first group is tasked to develop a work plan on the development of a regulatory framework for the use of onboard carbon capture systems and to look into Tank-to-methane and nitrous oxide emissions; the second group will look into social and economic sustainability themes and aspects of marine fuels for possible inclusion in the LCA Guidelines.
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