Decarbonisation is reshaping the global shipping landscape, and operators must act now to ensure they’re ready for this cleaner, greener future. From emissions reporting, fuel choice, vessel technology and digitalisation, the challenges are significant – but so are the opportunities.

This Fact Sheet dives deep into the key IMO and EU regulatory measures driving the transformation. With expert insights from Mark Watts, Director at LP Brussels, you’ll gain the tools to not only comply but thrive as the industry transitions towards a more sustainable and green future.

This Fact Sheet will help you:

• Understand upcoming regulatory shifts: Maritime operators will face greater compliance responsibilities as the industry moves towards decarbonisation.
• Anticipate and adapt to change: Making informed decisions is crucial for the maritime industry as it plays its role in a cleaner, greener world.
• Take a long-term approach: Be proactive and future-proof your organisation.

“The path to decarbonisation is not only a challenge, but an opportunity to redefine success in maritime shipping.” - Mark Watts, Director, LP Brussels

THE IMO's 'MID-TERM MEASURES' A PRIMER:

The IMO’s 2023 Strategy is a revised plan to decarbonise international shipping, setting ambitious targets including:

• Net-Zero Goal: Aiming for net-zero greenhouse gas emissions by or around 2050.

• Alternative Fuel Uptake: At least 5% – but striving for 10% – of energy used by 2030 to come from zero or near-zero greenhouse gas emission sources.
• Carbon Intensity Reduction: A 40% reduction in carbon intensity by 2030.

Impact on fuel choice: The move towards cutting emissions includes moving to zero and low-carbon fuels. To meet the alternative fuel uptake targets, a Global Maritime Forum policy statement says this will require “a significant and accelerated shift to zero-emission fuels” with “substantial investments and development in zero-emission technologies.” Transition fuels, such as LNG and LPG, “have a short window for commercial viability”, recommending a focus on “scalable zero-emission fuels like e-ammonia, e-methanol and green hydrogen” by the late 2030s.

Impact on Emissions Reporting

The IMO’s reporting requirements include:

• Submitting information on fuel oil consumption when the ship is not underway
• Total amount of onshore power consumed
• Fuel oil consumption per combustion system
• Laden distance travelled on a voluntary basis
• More detailed, standardised reporting of water ballast operations
• Expanded tracking and reporting of accidental discharges

A November 2024 policy brief by Dr Alison Shaw and Kathryn Benz for the Aspen Institute, sums up maritime industry concerns regarding IMO reporting requirements. The authors cite the IMO’s need to finalise Life Cycle Greenhouse Gas Intensity of Marine Fuels guidelines, develop a fuel certification framework and ensure the IMO Data Collection System (IMODCS) is ready for data reporting. IMODCS faces challenges, including a 10% reporting shortfall and 2,780 multiple reporting errors in data for 229 ships.

Impact on vessel technology standards: The IMO describes its 2023 Strategy as having a “new level of ambition” for the uptake of zero- or near-zero greenhouse gas emission technologies, fuels and energy sources. Encouragingly, many green technologies are already mature, with the potential to be rolled out at a greater scale.

A report by DNV and Ricardo for the IMO, Study on the Readiness and Availability of Low- and Zero-Carbon Ship Technology and Marine Fuels, outlined technologies that are already in use or transitioning to commercial development by 2030. The report found that the pace of adoption of ship technologies and fuels depends on fleet turnover rate and growth. A significant portion of future maritime energy demand will come from newly commissioned vessels. In 2030, 20-28% of demand will be from ships built after 2025, rising to 56-69% in 2040. When long-term demand is clear – and essential from a regulatory perspective – this helps the industry plan for and absorb increased costs.

Download the full content piece to learn more about how you and your organisation should be preparing for mid-term measures - FULL FACT SHEET HERE