2018 Initial IMO GHG Strategy
The IMO Initial Strategy on the reduction of GHG emissions from shipping sets key ambitions. This is a policy framework. The main goals are:
- Cut annual greenhouse gas emissions from international shipping by at least half by 2050, compared with their level in 2008, and work towards phasing out GHG emissions from shipping entirely as soon as possible in this century.
- The Initial GHG Strategy envisages a reduction in carbon intensity of international shipping (to reduce CO2 emissions per transport work), as an average across international shipping, by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008.
The Initial Strategy will be revised by 2023.
Read more detail about the strategy here.
Download the full text of the IMO Initial GHG Strategy here.
Meeting the goals
The Initial GHG Strategy includes a series of candidate short-, mid- and long-term measures, building on already-adopted mandatory energy-efficiency requirements for ships.
Some have already been addressed.
Since the adoption of the Strategy, IMO has approved a Programme of follow-up actions of the Initial Strategy up to 2023 and made good progress with the consideration and implementation of some of the short-term GHG reduction measures included in the list of candidate measures.
- adoption of MEPC resolution to invite Member States to encourage voluntary cooperation between the port and shipping sectors to contribute to reducing GHG emissions from ships (resolution MEPC.323(74))
- approval of the Procedure for assessing impacts on States of candidate measures (MEPC.1/Circ.885);
- further improvement of the existing energy efficiency framework with a focus on EEDI and SEEMP, in particular by adoption of the amendments to MARPOL Annex VI on the early application of the EEDI Phase 3 requirements for certain ship types, which will enter into force in April 2022 (resolution MEPC.324(75));
- adoption of the MEPC resolution on Encouragement of Member States to develop and submit voluntary national action plan to address GHG emissions from ships (resolution MEPC.327(75));
- approval by MEPC 75 of draft amendments to MARPOL Annex VI on the short-term goal-based carbon intensity reduction measure setting out technical and operational energy efficiency measures for ships, together with the terms of reference for a comprehensive impact assessment;
- commissioning, oversight and approval of the Fourth IMO GHG Study 2020;
- initial development of life cycle GHG assessment guidelines by the Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG) – read more here;
- initial consideration of other candidate measures listed in the Initial Strategy, including the establishment of an International Maritime Research Board to coordinate and oversee R&D efforts; and
- continued and enhanced technical cooperation and capacity-building activities, including the establishment of a voluntary multi-donor trust fund to sustain the Organization's technical cooperation and capacity-building activities to support the implementation of the Initial Strategy ("GHG-TC Trust Fund").
Support for developing countries
The Strategy promotes support for developing countries, especially small island developing States (SIDS) and least developed countries (LDCs). Read more below.
Review of the Strategy
IMO Member States have pledged to revise the Strategy in 2023.
Latest figures on GHG emissions from shipping
The latest statistics can be found in the IMO 4th GHG study (2020) - overview and download here.
Mandatory energy efficiency requirements - what ships must do
- In 2011, IMO agreed to include a new chapter on "energy efficiency" in MARPOL Annex VI and adopted mandatory energy efficiency regulations for ships – Energy Efficiency Design Index (EEDI) for new ships, Ship Energy Efficiency Management Plan (SEEMP) for all ships.
- The EEDI has subsequently been strengthened through further amendments.
- In 2016 IMO adopted the mandatory IMO Data Collection System (DCS) for ships to collect and report fuel oil consumption data from ships over 5,000 gt - first calendar year data collection completed in 2019.
- A range of IMO-led global projects initiated since 2012 support developing countries in ratifying MARPOL Annex VI and to implement the energy efficiency measures and to support and encourage pilot projects, innovation and R&D.
- In 2020, the IMO 2020 0.50% sulphur limit entered into force – cutting total sulphur oxide emissions from shipping by over 75%.
- In June 2021, IMO is set to adopt short-term measures to reduce carbon intensity of all ships by 40% by 2030, compared to 2008.
Short term measure to cut carbon intensity
The short-term measure is aimed at meeting the target set in the IMO Initial GHG Strategy – to reduce carbon intensity of all ships by 40% by 2030, compared to 2008. These will be mandatory measures under MARPOL Annex VI. They will bring in
- Attained Energy Efficiency Existing Ship Index (EEXI) is required to be calculated for ships of 400 gt and above, in accordance with the different values set for ship types and size categories. This indicates the energy efficiency of the ship compared to a baseline. Ships are required to meet a specific required Energy Efficiency Existing Ship Index (EEXI), which is based on a required reduction factor (expressed as a percentage relative to the EEDI baseline).
- Annual operational carbon intensity indicator (CII) and CII rating.
The CII determines the annual reduction factor needed to ensure continuous improvement of the ship's operational carbon intensity within a specific rating level. The actual annual operational CII achieved (attained annual operational CII) would be required to be documented and verified against the required annual operational CII. This would enable the operational carbon intensity rating to be determined. The rating would be given on a scale - operational carbon intensity rating A, B, C, D or E - indicating a major superior, minor superior, moderate, minor inferior, or inferior performance level. The performance level would be recorded in the ship's Ship Energy Efficiency Management Plan (SEEMP). A ship rated D for three consecutive years, or E, would have to submit a corrective action plan, to show how the required index (C or above) would be achieved. Administrations, port authorities and other stakeholders as appropriate, are encouraged to provide incentives to ships rated as A or B.
In simple terms, the short-term term measure are aimed at achieving the carbon intensity reduction aims of the IMO initial GHG Strategy.
They do this by requiring all ships to calculate their Energy Efficiency Existing Ship Index (EEXI) and to establish their annual operational carbon intensity indicator (CII) and CII rating
In other words, ships get a rating of their energy efficiency (A, B, C, D, E – where A is the best). A ship running on a low carbon fuel clearly gets a higher rating than one running on fossil fuel.
However, there are many things a ship can do to improve its rating through various measures, such as hull cleaning to reduce drag; speed optimization; installation of low energy light bulbs; installation of solar/wind auxiliary power for accommodation services; etc.
Asessment of possible impacts of candidate measures on States
The initial strategy recognizes that the impacts on States of a measure should be assessed and taken into account as appropriate before adoption of the measure. Particular attention should be paid to the needs of developing countries, especially small island developing States (SIDS) and least developed countries (LDCs). When assessing impacts on States the impact of a measure should be considered, as appropriate, inter alia, in the following terms:
- geographic remoteness of and connectivity to main markets;
- cargo value and type;
- transport dependency;
- transport costs;
- food security;
- disaster response;
- cost-effectiveness; and
- socio-economic progress and development.
Disproportionately negative impacts should be assessed and addressed, as appropriate.
MEPC 74 (May 2019) approved the Procedure for assessing impacts on States of candidate measures for reduction of GHG emissions from ships. The procedure identifies four steps:
- Step 1: initial impact assessment, to be submitted as part of the initial proposal to the Committee for candidate measures;
- Step 2: submission of commenting document(s), if any;
- Step 3: comprehensive response, if requested by commenting document(s); and
- Step 4: comprehensive impact assessment, if required by the MEPC.
Impact assessments should be evidence-based and should take into account, as appropriate, analysis tools and models, such as, cost-effectiveness analysis tools, e.g. maritime transport cost models, trade flows models, impact on Gross Domestic Product (GDP); updated Marginal Abatement Cost Curves (MACCs); and economic trade models, transport models and combined trade-transport models.
Low and zero-carbon fuels will be needed to decarbonise shipping.
For different fuel options, there is a need to consider issues such as safety, regulation, pricing, infrastructural availability, lifecycle emissions, supply chain constraints, barriers to adoption and more. Presentations from the IMO symposium on alternative fuels for shipping (February 2021) can be downloaded here.
We also know that the whole lifecycle needs to be looked at. A candidate measure in the IMO Initial GHG Strategy refers to developing "robust lifecycle GHG/carbon intensity guidelines for all types of fuels, in order to prepare for an implementation programme for effective uptake of alternative low-carbon and zero-carbon fuels".
The lifecycle refers to the assessment of greenhouse gas emissions from the fuel production to the ship (Well-to-Wake); from primary production to carriage of the fuel in a ship's tank (Well-to-Tank, also known as upstream emissions) and from the ship's fuel tank to the exhaust (Tank-to-Propeller or Tank-to-Wake, also known as downstream emissions).
Candidate future low-carbon and zero-carbon fuels for shipping have diverse production pathways (for example, different generations of biofuels, hydrogen-based fuels, etc.) entailing significant differences in their overall environmental footprint.
Shipping will undoubtedly need new technologies, new fuels and innovation to meet the GHG targets. There needs to be investment in R&D, infrastructure and trials.
A range of IMO-executed projects are addressing this, focusing on supporting developing countries to implement MARPOL Annex VI energy efficiency measures and promoting trials and training.
Some examples include:
- The European Union-funded GMN MTCC project has pilot projects ongoing. One in the Pacific has installed solar panels on a ferry - leading to fuel savings of 32% in operation and 87% reduction in GHG emissions at anchor. Other examples include collecting and analysing ship fuel consumption data; helping to improve ship trim optimization; developing technology needs assessments; and carrying out port energy audits. Data from pilot projects is shared to facilitate scaling up and roll out elsewhere.
- The Global Industry Alliance (GIA) to Support Low Carbon Shipping has developed a Just-in-Time guide. Watch the video animation
- The GIA has launched a free to access E-Learning course aimed at seafarers and anyone interested in this aspect of shipping. Access the course here: Course: Introductory Course on Energy Efficient Ship Operation (unccelearn.org).The self-paced course, 'An Introduction to Energy Efficient Ship Operation' is intended as a first glimpse into how GHG emissions from ships can be addressed.
- The GreenVoyage2050 project has launched a workshop package on 'Alternative fuels and energy carriers for maritime shipping' – Download here - Workshop Packages: GreenVoyage2050 (imo.org)
Climate action projects list
- IMO-Norway GreenVoyage2050 Project https://greenvoyage2050.imo.org/
- IMO-European Union GMN (Global Maritime Network of Maritime Technology Cooperation Centres) project https://gmn.imo.org/
- Global Industry Alliance (GIA) to Support Low Carbon Shipping https://greenvoyage2050.imo.org/about-the-gia/
- GEF-UNDP-IMO GloFouling Project which addresses the issue of hull fouling that contributes to GHG emissions https://www.glofouling.imo.org/
- IMO-Republic of Korea GHG-SMART project https://www.imo.org/en/MediaCentre/PressBriefings/pages/39-GHG-SMART-.aspx .
- IMO-EBRD-World Bank FIN-SMART roundtable – co-lead by IMO, the European Bank for Reconstruction and Development and the World Bank https://www.imo.org/en/MediaCentre/Pages/WhatsNew-1579.aspx
- IMO and the UN Environment Programme (UNEP) Maritime Zero- and Low-Emission Innovation Forum in September 2021 https://www.imo.org/en/MediaCentre/Pages/WhatsNew-1558.aspx
- IMO-Germany Asia Maritime Transport Emissions project (known as the Blue Solutions Project) IMO-Germany project to cut maritime transport emissions in Asia
- IMO-Singapore NextGEN https://www.imo.org/en/MediaCentre/PressBriefings/pages/NextGEN-project.aspx