Crucial Climate Negotiations at the IMO: Now Is the Time to Deliver

In 2023, members of the UN’s International Maritime Organization (IMO) agreed on a historic deal that global shipping should be climate neutral by around 2050. Since then, negotiations have been underway on the specific regulations that will drive the green transition of shipping. Now, an agreement must be reached. This week, the crucial negotiations begin. Sailing using green fuels must be cheaper compared to using traditional fossil fuels.

Anne H. Steffensen, CEO of Danish Shipping: “Sailing using green fuels must be cheaper compared to using traditional fossil fuels. The agreement must include a model that reduces emissions from shipping and significantly narrows the price gap between green and fossil fuels. This will also send a very clear signal to investors and producers that it’s time to get moving on scaling up green fuel production in a big way,” said Anne H. Steffensen, CEO of Danish Shipping.

Difficult negotiations lie ahead. Countries with vastly different starting points and interests must compromise and find a middle ground that everyone can live with – and that also delivers on the goal of climate-neutral shipping by 2050. “Shipping accounts for about three percent of global CO₂ emissions. So, it’s a major task and a significant responsibility we’re facing. We must do our part. Shoulder our share of the responsibility. And we must do it in a way that ensures support – including financial – for the countries that are dis­pro­por­tio­na­te­ly affected by climate change,” said Anne H. Steffensen.

Among those particularly adversely affected by climate change are the so-called Small Island Developing States, which are especially vulnerable to extreme weather, rising sea levels, and other climate impacts.“I’m proud that Denmark is taking the lead in the green transition of shipping. Both at the IMO, where the Danish delegation – headed by the Minister for Industry, Business and Financial Affairs and the Danish Maritime Authority – is working hard to build support for the most ambitious agreement possible, and in our shipping companies, which are frontrunners and have made significant investments in new vessels capable of running on green fuels. We need an agreement that ensures it is never a competitive advantage to fail to meet emissions reduction requirements. Continuing to sail on fossil fuels should not be rewarded – on the contrary, green shipping must become more attractive,” said Anne H. Steffensen.

Danish Shipping is participating this week as advisors in the Danish delegation to the IMO. The delegation is led by the Danish Maritime Authority.