MEPC 83: IMO deal not enough to drive investments – GMF
The IMO agreement on a new global fuel standard draft will not be enough to drive investments in cleaner marine fuels uptake, says Jesse Fahnestock, director of decarbonisation at the Global Maritime Forum (GMF).
IMAGE: Last week's MEPC 83 meeting at the IMO headquarters in London. X of @IMOHQ
International Maritime Organization’s (IMO) member states voted in favour of a compromise two-tiered greenhouse gas (GHG) intensity reduction plan on Friday, after week-long negotiations failed to reach a consensus on a flat-rate levy.
The approved draft will require ships to progressively reduce their well-to-wake GHG fuel intensity (GFI) from 2028 onwards. The targets are benchmarked against 2008 levels, set at 93.30 grams of CO2-equivalent per megajoule (gCO2e/MJ).
However, the agreed measures may not be “strong enough on their own to deliver on the IMO’s strategy,” GMF says.
“As currently designed, measures are unlikely to be sufficient to incentivise the rapid development of e-fuels such as e-ammonia or e-methanol, which will be needed in the long run due to their scalability and emission reduction potential,” the association adds.
GHG intensity reduction targets will tighten over time, ranging from 4–17% in 2028 to 30–43% by 2035. The MEPC plans to review and further tighten targets for 2036–2040 at another session in 2032. According to the draft framework, the base reduction target should reach 65% by 2040.
“A failure to begin investing in these [renewable] fuels now would put the target of at least 5% zero- and near-zero emission fuel use by 2030 and the industry’s entire 2050 net-zero goal at risk,” according to the GMF.
GMF calls for clear guidelines on revenue distribution from funds generated by non-compliance, and on the lifecycle assessments (LCAs) of various fuels. These will determine the fuels and vessels that will be rewarded in the framework and which options can meet GHG emission targets.
The IMO has tasked an expert working group to come up with LCAs to determine how much GHG intensity a given fuel has under different conditions. There is no specific timeline set for when the LCAs will be finalised.
“While the targets are a step forward, they will need to be improved if they are to drive the rapid fuel shift that will enable the maritime sector to reach net zero by 2050,” Fahnestock says.
Given that the current measures are unlikely to drive an early shift to e-fuels, the GMF stresses the need for complementary national policies. These include bridging the cost gap between fossil and renewable fuels, and invest in e-fuels production and infrastructure.
“While we applaud the progress made, meeting the targets will require immediate and decisive investments in green fuel technology and infrastructure,” Fahnestock says.
By Aparupa Mazumder
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