The recent decision reached by the IMO at its MEPC meeting was not what the industry wanted to hear. I’ve suggested who the engineers of the delay were in previous articles but now we hear from industry to get a feel of the repercussions.
Richard Berkling, CEO of PowerCell Group, was cautiously optimistic about the setback, he said: “The IMO’s decision at the recent extraordinary MEPC to postpone adoption of the Net Zero Framework by one year is a setback for the maritime sector, but not a defeat. The pause underscores the need for persistence and verifiable proof that zero-emission technologies are practical, competitive, and reliable in operation.”
He went on to say that during this delay its imperative that industry has to deliver tangible projects with verifiable performance data to persuade hesitant stakeholders including shipowners, fleet operators and the all important investors.
“The future will be shaped by pioneers who lead, project by project,” he added.
Others aren’t nearly as optimistic as PowerCell’s Berkling. James Helliwell, commercial director for decarbonisation at V, said: “The IMO’s decision to delay the Net Zero Framework for a year marks a profound setback for global shipping decarbonisation. The delay - and potential abandonment - of unified global measures opens the door to a patchwork of regional carbon schemes. This means shipowners may face multiple, overlapping carbon taxes for the same emissions whilst navigating inconsistent regional standards without the level playing field that IMO measures would have provided.”
I alluded to the issues of having regional regulations as opposed to a global standard but Helliwell has explained the problems the lack of an IMO framework presents succinctly.
He does imply that there are green shots of optimism despite the setback, stating: “The industry’s decarbonisation imperative hasn’t disappeared; it has simply become more complex and costly. The 2023 IMO GHG Strategy targets remain, even as the pathway to achieving them becomes increasingly unclear.”
He went on to say that given the outcome ship managers will now play an essential role in helping companies navigate what will inevitably become a more fragmented regulatory landscape. He points to his own company V.’s integrated ship management platform, which includes performance optimisation tools and decarbonisation initiatives, that will aid owners and operators in meeting what may be fragmented requirements whilst maintaining operational efficiency and commercial competitiveness.
One segment of the maritime industry which was particularly seeking clarification over the Net Zero Framework was LNG suppliers/users. The industry body representing that fuel, SEA-LNG, said it will use the delay time to work with its members and other industry organizations to continue to develop meaningful, scientific studies to support the IMO’s critical work.
Again, SEA-LNG see the outcome of the IMO meeting in a more positive light than others. It stated: “The industry will continue on the road to decarbonisation. The methane pathway is currently the only practical, realistic and scalable solution to the decarbonisation of the global maritime industry, as demonstrated by the rapid growth in the LNG dual-fuel fleet and new build orderbook.”
The group pointed to the work done by engine manufacturers to reduce methane slip as well as the growing availability of biomethane and gradual introduction of e-methane as evidence that LNG has a longer lifespan than those who dismiss it as a fossil fuel would suggest.
It said in a statement: “the pathway [to Net Zero] will continue to deliver meaningful reductions of greenhouse gases and local emissions to the citizens of the world.”
To hear more about future fuels including LNG and also hear from policymakers who can give key insights in to how the road to net zero may look, don’t forget to join us in Hamburg next month from the 25-27 to hear from experts in their fields. Hurry though, tickets are selling out fast, especially after this latest stalemate at the IMO, so click here to reserve your place.
