Discussions at the meeting tended to focus on mid-term measures ahead of ISWG-GHG 15. These might include technical components, such as a GHG intensity standard, as well as economic measures aimed at incentivising the global availability and uptake of low and zero carbon fuels. Further measures discussed include lifecycle carbon analysis (LCA) and collection of live fuel data consumption to better inform outcomes.
Looking forward, as we begin to build on these outcomes it is vital that we move on from discussions and start to take action. Importantly, ship owners must see zero-emissions solutions as the ‘next-build’ solution for the fleet as we cannot wait for the next generation of ships to adopt the zero-carbon technologies of the future.
Ultimately, the progress of emissions trading legislation in the EU and US show that, regardless of what the IMO decides, the future is low carbon for any vessels trading in either of these regions. For example, under the EU’s Emissions Trading Scheme (ETS) carbon emitted will have to be paid for, either directly or in the form of trading. This will start with 40% of carbon emitted in 2024, before rising to 100% by 2026. There is clearly no time to delay. Carbon now trades at almost €100 per tonne – up from around €7 per tonne a few years ago. This is a major cost to companies who do not have carbon allowances to trade, and a major opportunity to those that do.