The global shipping industry has agreed to drastically cut pollution levels and move towards net-zero, but the deal falls short of the Paris climate agreement.
The International Maritime Organization (IMO)’s agreement was welcomed by the European Commission as a “meaningful step towards achieving net-zero greenhouse gas (GHG) emissions from global shipping by 2050.”
But the IMO Net-Zero Framework falls should of the 1.5ºC temperature goal of the Paris Agreement.
“While today’s agreement does not yet ensure the sector’s full contribution to achieving the Paris Agreement goals, it constitutes a strong foundation for starting the required energy transition of shipping”, the European Commission said.
The IMO says it amounted to new binding regulations to steer international shipping towards net-zero emissions over the next 25 years.
The IMO Secretary-General, Arsenio Domniguez, said they had made “achievements that will shape the future of shipping.”
According to an analysis by the transport NGO, Transport and Environment, the deal will lead to emissions being cut by up to 30 percent by 2030 and by up to 80 percent by 2040, potentially with a view to reaching net zero by 2050.
Transport and Environment calculate that the deal will generate revenues of $10 billion per year until 2035 but that this will be insufficient to support the full uptake of net-zero fuels.
Shipping is responsible for at least 10 percent of global greenhouse gas emissions in the transport sector, amounting to 3 percent of global emissions of carbon dioxide.
Green fuels are under development and alternative technology like hydrogen, but the uptake and further development require more investment.
The European Commission said the IMO has made a “landmark agreement”.
“The new measure also introduces a first global pricing mechanism for emissions, which along with financial incentives, will encourage shipping companies to use the cleanest fuels and technologies early on.”
The European Commissioner for Net Zero, Wopke Hoekstra, was upbeat about developments.
“This agreement is a significant milestone, not just for shipping decarbonisation, but for global climate action as a whole. The agreement represents a key step towards achieving net-zero emissions in the maritime sector.
This global achievement is even more remarkable and encouraging in the current geopolitical context. It shows that multilateralism remains the way to go”, he said.
But the EU wants to see the deal strengthened further.
The agreement will need to be confirmed by the International Maritime Organization as a whole in October.
“As the negotiations of the new agreement have concluded, it is time for all countries to start working on the implementation of the framework.
The [European] Commission will also assess the new global measure to see how it interacts with current EU maritime related regulations, maintaining environmental integrity while avoiding significant double burden”, the EU said.