IMO Proposes a Pricing Mechanism to Reduce Ship GHG Emissions

Author: Stas Margaronis

The United Nations International Maritime Organization (IMO) is considering implementing a “pricing mechanism” to accelerate the transition of international shipping from greenhouse gases (GHGs) to zero emissions. This proposal was made during the Marine Environment Protection Committee (MEPC) meeting held at IMO headquarters in London from September 30 to October 4.

On October 10, the IMO announced that the MEPC has made progress in formulating interim measures aimed at reducing GHG emissions to achieve the goals set out in the 2023 IMO Strategy for Reducing Greenhouse Gas Emissions from Ships. The proposed regulations are scheduled to be adopted by the end of 2025, based on previously approved short-term measures focused on improving vessel energy efficiency. The interim measures under discussion include:

Technical elements, such as global marine fuel standards that stipulate a gradual reduction in the GHG intensity of marine fuels;
Economic elements, including a pricing mechanism for shipping GHG emissions.

Maersk Proposes Incentive Measures

Vincent Clerc, CEO of A.P. Moller-Maersk, urged the International Maritime Organization (IMO) on August 27 to take measures that incentivize ocean carriers to achieve net-zero carbon emissions from vessels. Clerc proposed assessing a fee per container for carriers using fossil fuels to encourage them to build zero-emission or near-zero emission powered ships.

Hyundai Heavy Industries Announces Successful Testing of “Carbon-Free” Ammonia Fuel Engine

HD Hyundai Heavy Industries announced the successful development of an ammonia dual-fuel (DF) engine, a carbon-free fuel technology, which has received type approval from seven major classification societies. The company conducted successful type approval tests on its first HiMSEN ammonia DF engine “H22CDF-LA” at its Engine Technology Center in Ulsan, South Korea.

Challenges of Ammonia Fuel

The use of ammonia as a fuel still faces several obstacles, including high toxicity and corrosiveness, as well as difficulties in burning ammonia in internal combustion engines. However, technological advancements are addressing these issues.