Mid- and long-term GHG reduction measures

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Work Plan

MEPC 76 (June 2021) approved the Work Plan to Progress development of mid- and long-term GHG reduction measures in line with the Initial IMO Strategy on Reduction of GHG Emissions from Ships and its Programme of follow-up actions. (download Work Plan here).

The Work Plan consists of the following three main phases:

  • Phase I –  Spring 2021 to Spring 2022: Collation and initial consideration of proposals for measures. 

  • Phase II – Spring 2022 to Spring 2023: Assessment and selection of measure(s) to further develop. 

  • Phase III: Development of (a) measure(s) to be finalized within (an) agreed target date(s) in the 2023 IMO Strategy on Reduction of GHG emissions from ships. 

The Work Plan foresees the assessment of impacts on States of the proposed measures in accordance with the Procedure for assessing impacts on States of candidate measures set out in Circular MEPC.1/Circ.885/Rev.1. Once a measure is adopted and enacted, implementation and impacts will be kept under review, upon request from Member States, so that any necessary adjustments may be made.

2023 IMO Strategy on Reduction of GHG Emissions from Ships

MEPC 80 (3-7 July 2023) adopted the 2023 IMO Strategy on Reduction of GHG Emissions from Ships. The 2023 IMO GHG Strategy states that a basket of candidate measure(s), delivering on the reduction targets, should be developed and finalized comprised of both:           

  1.   a technical element, namely a goal-based marine fuel standard regulating  the phased reduction of the marine fuel's GHG intensity; and                                                   
  2.   an economic element, on the basis of a maritime GHG emissions pricing mechanism.  

The candidate economic elements will be assessed observing specific criteria to be considered in the comprehensive impact assessment, with a view to facilitating the finalization of the basket of measures.

The mid-term GHG reduction measures should effectively promote the energy transition of shipping and provide the world fleet a needed incentive while contributing to a level playing field and a just and equitable transition.

The 2023 IMO GHG Strategy envisages the mid-term measures to be approved at MEPC 83 (Spring 2025) for adoption at an extraordinary session of the MEPC set to be specially convened in Autumn 2025 to allow for the entry into force of the measures in 2027.

In addition, MEPC 80 established the Steering Committee on the comprehensive impact assessment of the basket of candidate mid-term GHG reduction measures, and requested the Steering Committee to conduct the comprehensive impact assessment of the candidate measures submitted by that session in accordance with the terms of reference set-out by the Committee (annex 16, MEPC 80/17/Add.1) and the Revised procedure for assessing impacts on States of candidate measures (MEPC.1/Circ.885/Rev.1).

MEPC 81 (18-22 March 2024) agreed on a two-day expert workshop (Fifth GHG Expert Workshop – GHG-EW 5) to be held to discuss the preliminary findings of the comprehensive impact assessment, covering all aspects, including the modelling of revenue disbursement. The outcomes of this expert workshop will be reported to MEPC 82 as well as the final report of the comprehensive impact assessment in order to approve the basket of mid-term measures by MEPC 83. 

IMO net-zero framework

Throughout Phase I of the Work Plan, Member States and Organizations submitted several proposals for candidate measures  containing technical and economical elements. The process of evaluation and selection of measures during Phase II led to the submission of refined proposals at MEPC 80, and updated versions at MEPC 81 in order to further develop the basket of candidate mid-term measures in the context of Phase III of the Work plan.

Updated fact sheets for each individual measure proposal are available on IMODOCS.

As a result of the consideration of these proposals, MEPC 81 agreed on an illustration of a possible draft outline of an "IMO net-zero framework", listing regulations under the International Convention for the Prevention of Pollution from Ships (MARPOL) to adopt or amend to allow for a new global fuel standard and a new global pricing mechanism for maritime GHG emissions.

The possible draft outline for the IMO net-zero framework is to be used as a starting point to consolidate the different proposals into a possible common structure, to support further discussions with the understanding that this outline would not prejudge any possible future changes to it as deliberations progress.

Outcome of discussions during previous meetings on the development of the basket of mid-term measures

ISWG-GHG 10 (18-22 October 2021) used Phase I of the Work Plan to guide its consideration of possible mid-term GHG reduction measures.

ISWG-GHG 12 (16-20 May 2022) considered in detail concrete proposals for mid- and long-term measures and associated impact assessments in the context of Phase I of the Work plan, including further consideration of those considered by ISWG GHG 10 and MEPC 77, as well as the proposal to establish an International Maritime Research Board.

MEPC 78 (6-10 June 2022) approved the further development under Phase II of the Work plan of a "basket of candidate mid-term GHG reduction measures", integrating both various technical and carbon pricing elements while recognizing the necessary flexibility. The Committee requested ISWG-GHG to continue to advance the development of the basket of candidate mid-term GHG reduction measures.

ISWG-GHG 13 (5-9 December 2022) made progress in considering mid-term GHG reduction measures noting increasing support for a possible combination of a technical element and an economic element within a basket of measures . The Committee requested ISWG-GHG to continue its consideration of the proposed measure with a view to identify the priority measure(s) to be further developed as part of a basket of measures by MEPC 80, in accordance with the Work plan.

MEPC 79 (12-16 December 2022) agreed the terms of reference for the next sessions of the Intersessional Working Group on Reduction of GHG Emissions from Ships including the invitation to further consider and finalize the assessment and selection of measure(s) to further develop in the context of Phase II of the Work plan for the development of mid- and long-term measures.

ISWG-GHG 14 (20-24 March 2023) considered proposals for developing a basket of candidate mid-term GHG reduction measures, containing both technical and economic elements, in the context of Phase II of the IMO Work Plan for the development of mid-term measures and noted the constructive progress made in this regard. The Group requested the Secretariat to organize a dedicated ad-hoc expert workshop on comparative analysis of candidate mid-term measures ahead of the next intersessional working group meeting.

Ad-hoc expert workshop on candidate mid-term GHG reduction measures (25 to 26 May 2023) provided an opportunity to exchange information between proponents of GHG reduction measures and experts to facilitate the identification of possible technical and economic elements as well as other commonalities in the proposed measures, which may serve as building blocks for the basket of candidate mid-term measures. 

ISWG-GHG 15 (26-30 June 2023) completed its work on the description of the basket of measures, comprising a technical element and economic element, as identified in "Phase II" of the work plan, which was the assessment and selection of measure(s) to further develop. During the discussions, all delegations that spoke supported the further development of a goal-based fuel/energy standard as the technical element mandating phased reductions in the GHG intensity of marine fuels, as part of a basket of measures.

MEPC 80 (July 2023) initiated the comprehensive impact assessment of the basket of candidate mid-term measures and adopted resolution MEPC.377(80) on the 2023 IMO Strategy on Reduction of GHG Emissions from Ships (2023 IMO GHG Strategy).

Earlier discussions on proposals for market-based measures up until 2013

A non-exhaustive summary of previous discussions on proposals for market-based measures which had taken place in the Organization is set out in document ISWG-GHG 12/INF.2