The World Shipping Council (WSC) has welcomed a landmark global agreement reached at the International Maritime Organization (IMO), calling it a pivotal step toward the decarbonization of the shipping industry.
After intense negotiations, the IMO has agreed to finalize and adopt a groundbreaking measure in October that will establish a greenhouse gas (GHG) fuel standard and regulatory framework. This initiative, set to begin in 2028, mandates continual reductions in the GHG intensity of marine fuels over the next two decades—marking a historic move for a sector long considered “hard to abate.”
“This is a major milestone for climate policy and a turning point for shipping,” said Joe Kramek, President & CEO of the World Shipping Council. “Our industry has long carried the ‘hard to abate’ label, but with record investments and now a global regulatory path, we can begin to change that narrative.”
Kramek noted that liner shipping is already making strides toward decarbonization, with nearly 1,000 renewable-capable vessels expected to be in operation by 2030. However, he emphasized that a global framework is essential to ensure renewable fuels can be scaled and priced competitively.
“Today’s outcome from the IMO enables global regulation to support and accelerate this transformation, leveraging the industry’s investment to meet climate goals,” he added.
Bryan Wood-Thomas, WSC Vice-President and lead IMO representative, praised the Organization’s ability to reach a consensus on what he described as one of the most complex and significant issues in its history.
“Drawing from the World Shipping Council’s Green Balance Mechanism, this agreement introduces a two-tiered regulatory approach,” Wood-Thomas explained. “It includes emission fees tied to the GHG intensity of fuel used, and more importantly, creates incentives for the adoption of zero and near-zero emission fuels.”
He underscored the potential of this regulation to drive both environmental and economic gains. “The global transition to clean marine fuels will spark innovation and investment across the supply chain, creating new economic opportunities and delivering long-term environmental benefits. But considerable work remains to finalize the rules that will guide the next era of maritime energy.”
“This is not the finish line, but it is a critical starting point,” Wood-Thomas concluded. “With this structure in place, we now have the regulatory foundation needed to tackle a global challenge that affects every corner of the planet.”
Key Facts:
Nearly 200 renewable-capable liner ships are in operation today, with an additional 700 expected by 2030.
The global shipping industry contributes approximately 2–3% of total GHG emissions.
Alternative fuels remain significantly more expensive than traditional options:
- LNG: +31%
- Grey methanol: +53%
- Bio-LNG: +111%
- Green ammonia: +274%
(Source: Platts Global Bunker Fuel Cost Calculator, January 2025 – Rotterdam)
