According to a new publication by the Maritime Emissions Reduction Centre (MERC), existing fleet efficiency initiatives are necessary to satisfy the International Maritime Organization (IMO)’s Mid-Term GHG reduction targets.
Lloyd’s Register (LR) revealed that by increasing efficiency, the maritime sector may minimise the amount of alternative low-GHG fuels required, cutting the overall cost of the energy shift, according to the report.
The publication titled “IMO Mid-Term GHG Reduction Measures as a Driver for Efficiency” discusses the problems and possibilities posed by the IMO’s mid-term measures.
These measures, which are likely to be adopted in April 2025 and take into effect in 2027, include an economic component such as a GHG pricing system and a goal-based fuel standard that governs the gradual decrease of marine fuel’s GHG intensity.
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However, LR outlined that most new low-carbon fuels are unsuitable for current vessels, forcing the maritime sector to compete with other industries for appropriate drop-in fuels.
As a result, increasing efficiency in the existing fleet is critical for reducing GHG emissions while preserving global trade.
LR believes that the implementation of economic aspects, such as GHG pricing, would encourage investments in technology that minimise both energy use and emissions, resulting in increased shipping efficiency.
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Stelios Korkodilos, Director of the MERC, said: “Most new low-carbon fuels aren’t suitable for existing vessels, and the maritime sector will compete with aviation and road transport for limited supplies of drop-in alternatives.
“MERC will work with all industry stakeholders to overcome the technical, financial, and commercial barriers that hinder the uptake of solutions for the existing fleet and support shipping’s transition to a low-GHG future.”