International Maritime Organisation (IMO) has decided that by 2040, the world fleet must have reduced its total greenhouse gas (GHG) emissions by more than 70% compared to 2008 levels.
The world’s largest direct-membership organisation for ship owners, charterers, shipbrokers and agents, BIMCO has described this decision as “groundbreaking”, noting that the newly adopted IMO GHG reduction strategy translates to a reduction of around 90% on average at the individual ship level due to expected fleet growth.
Newer ships already on the water and those on order will exist well beyond 2040 and the emissions reduction outlined in the strategy will apply to these ships.
BIMCO president Nikolaus Schües recognises the important change the shipping industry is now facing, and says, “I cannot stress strongly enough to my colleagues in the industry that this is already happening as we speak. The profound change in the way ships must be built, operated and fuelled will impact every shipowner on the planet. Investment decisions need to be reassessed, designs need change and business models will be forever impacted.”
Schües went on to add, “Climate change affects all of us and serves as a reminder that actions to limit our emissions must be taken urgently. BIMCO is grateful to the IMO member states for setting out in clear terms the pathway the shipping industry needs to follow in order to transition each and every ship in the world fleet to a net-zero GHG emission future.”
The 2023 IMO Strategy on reduction of GHG emissions from ships also establishes the timeline for the introduction of mandatory measures to ensure the pathway will be followed.
