Net-Zero Shipping faces mounting challenges

ON WORLD Maritime Day, attention turns to shipping’s decarbonisation challenge, as the International Maritime Organization (IMO) prepares to adopt a legally binding net-zero framework next month - amid US objections and threats of retaliatory tariffs if countries support the measures. 

The IMO framework, the first in the world to combine mandatory emissions limits and greenhouse gas pricing across an entire industry, aims to bring global shipping to net-zero emissions by around 2050. It will apply from 2027 to large ocean-going ships over 5,000 gross tonnage, responsible for 85% of CO₂ emissions from international shipping. 

After withdrawing from the IMO climate talks in London earlier this year, the United States urged other countries to reject the proposed framework and has since threatened “reciprocal measures” on any country that charges fees on US ships. 

In Australia, the government recently announced targets to cut emissions by 62–70% on 2005 levels by 2035. 

The Transport and Infrastructure Net Zero Roadmap and Action Plan, released last week, outlines five priority actions for all transport modes, all relevant to maritime: 

• Invest in enabling low- and zero-emissions transport infrastructure
  · Electrify and increase transport’s energy performance
  · Switch to low-carbon alternatives where electrification is not feasible 
  · Innovate to expand cost-competitive transport technology options 
  · Scale up efforts to reduce embodied emissions in transport infrastructure 

On 18 September, the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts outlined further actions relevant to maritime, including developing a Maritime Emissions Reduction National Action Plan (MERNAP), supporting zero-emissions travel through the Active Transport Fund, embedding sustainability in the Infrastructure Policy Statement, working with states and territories to reduce transport and infrastructure emissions, and engaging with international partners on shipping and aviation. The department also confirmed its $1.1 billion Cleaner Fuels Program, aimed at boosting domestic production of low-carbon liquid fuels, strengthening fuel security, and supporting new jobs in the net-zero economy. 

The Maritime Industry Association Limited (MIAL) recognises the “immense challenge of decarbonising the shipping and maritime sectors.” At its 5th Maritime Decarbonisation Summit in Melbourne earlier this year, CEO Angela Gillham highlighted Australia’s potential to manufacture the zero- and near-zero fuels urgently needed worldwide and called on the government to develop policy drivers in close consultation with industry to stimulate supply and demand. 

Amid US objections, Joe Kramek, president and CEO of the World Shipping Council, described the IMO framework as “a serious, effective plan that gives countries and industry a clear path to decarbonise shipping.” Writing in TradeWinds, he emphasised that the agreement, forged over years of discussions among more than 100 governments, “delivers real targets, a fair playing field and a plan that keeps the focus on driving shipping’s decarbonisation.”