International Maritime Organization reached provisional agreement on measures to reduce greenhouse gas emissions in maritime transport

The outcome of the negotiations reached by the 176 IMO Member States is historical as, when enforced, it would oblige to take actions that reduce greenhouse gas emissions in maritime transport around the world. Finland would have hoped for a more effective global solution but, after the lengthy discussions at the session, was ready to accept the compromise. Finland will continue the work to further develop the regulatory framework together with the other IMO Member States.

The regulation negotiated now would encourage ships to use sustainable fuels and energy sources. The regulation is composed of a two-level fuel standard and contributions to be paid based on emissions above the set thresholds. 

A ship whose greenhouse gas fuel intensity is above the annual threshold must pay for the emissions that exceed the threshold. The amount of the contribution is determined according to the amount by which the annual threshold is exceeded. Taking the lead will be rewarded: ships that fulfil the requirement will earn ‘surplus units’. The ships can transfer the surplus units to other ships subject to certain conditions, bank them to be used over the next two calendar years or, if they wish to do so, cancel them.

IMO intends to establish international fund to finance sustainable solutions 

Contributions would be targeted to a new international fund. The resources of the fund would be used to support the development and deployment of zero GHG and near zero GHG ship fuels and technologies around the world. The fund would support, in particular, the least developed countries and small island developing states in the transition towards more sustainable ship fuels. 

In Finland’s opinion, the revenues of the new fund should be used to rapidly develop and deploy solutions that reduce emissions from maritime transport. In addition, special circumstances, such as the passage of ships in ice-covered areas, must be taken into account in the allocation of funds.

Finland supports the aim to relieve any double regulatory burden

The EU already has a standard for ship fuels under the FuelEU Maritime Regulation. In addition, the EU’s emissions trading system covers 100 per cent of emissions generated on journeys within the EU and 50 per cent of emissions on routes to third countries.

Finland considers that a global emission reduction measure negotiated in the IMO would both reduce the imbalance in the international regulation of emissions from maritime transport and balance the competitive environment of shipping and business between the EU and the rest of the world. Now that an agreement has been reached in the IMO, the EU regulation currently in force needs to be reviewed. Any significant double burden with respect to EU’s measures should be prevented and relieved. 

The goal of IMO is to reach carbon neutrality in maritime transport by or around 2050, taking national circumstances into account. By 2030, greenhouse gas emissions from ships must be reduced by at least 20 per cent compared to 2008. The interim target set for 2040 is to reduce emissions by at least 70 per cent.

What’s next?

The regulatory framework comprises both the amendments to the International Convention for the Prevention of Pollution from Ships (MARPOL) that have already been agreed and certain guidelines, and the whole package is to be adopted at the extraordinary session of the Marine Environment Protection Committee in October 2025. 

After that, further guidelines would be issued concerning the implementation of the regulation. Finland considers it important that the safe passage of ships in ice-covered areas will be taken into account in the guidelines.