IMO sees convergence on net zero network but much work to be done

The member states of the International Maritime Organization (IMO) moved forward on a framework for reducing greenhouse gas emissions at the MEPC82 meeting last week but there is still much work to do.

Speaking at the close Marine Environment Protection Committee (MEPC82) meeting in London last week IMO Secretary-General Arsenio Dominguez describe the meeting as constructive and that it “has allowed us to identify further areas of convergence on defining the legal framework for the IMO Net Zero Framework, that will effectively guide the next round of dialogue”.

Dominguez said that he was convinced that at the next meeting – MEPC83 – in April next agreement would be reached on what he describes as “technical and economic” measures.

University College London’s UCL Energy Institute said that while there was still a large amount of work remaining negotiations were still on track for an agreement on a new text to Chapter 5 of MARPOL Annex VI that would enshrine mid-term policy measures to drive the energy transition in international shipping.

A key part of this is economic measures or a GHG levy. According to UCL there were three main options left on the table –

·         A flexibility mechanism on its own and no levy/universal price on GHG

·         A feebate mechanism (associated with a levy/universal price on GHG),

·         A feebate mechanism combined with a flexibility mechanism.

Dr Tristan Smith, Professor of Energy and Transport at the UCL Energy Institute said:a “investors looking to the levy to support business case for early adoption of new technologies and particularly e-fuels, and member states looking to the levy for support for a just and equitable transition, should be optimistic based on this meeting. They will also have to be patient – there is still a lot of work to be done before approval at MEPC 83 in April 2025”

 UCL Energy Institute believe there is a majority in favour of a levy based on current policy positions.

Dr Annika Frosch, Research Fellow at the UCL Energy Institute, said: “…If it were to come to a vote, the current positions suggested enough support to pass the measure with a clear majority, though positions may still evolve as negotiations continue.”

Meanwhile IMO Secretary-General Dominguez would appear confident on agreement at MEPC83 in April 2025 in regards both technical and economic measures, if joking that he won’t let delegates leave until they do. “I am sure that you will reach that midpoint where we can continue to show that when we set goals, we achieve them. If not, I am closing the doors next year and we will have to stay here until we do agree - but I am sure it will not get to that. I have great faith in you all.”