There are various decisions, agreements and declarations coming out of COP 26. Most important is the final statement named the Glasgow Pact - the pact all agree on. It is not legally binding, but it sets a political direction.
The agreements at COP commit countries and governments to act. Businesses are not mentioned and a part of the statement, so any changes for our industry will come via new national/regional regulations like the Norwegian law, EU regulation, port state or IMO regulations. COP and the adjacent meetings send a clear signal to IMO, the only body that can regulate shipping.
What was on the agenda for the IMO MEPC meeting?
The IMO hosted their 77th MEPC on November 22-26. Key proposals from the Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 10) held in October were put forward:
Several new initiatives were launched during COP, and we can expect that these will be materialized through regulation later:
Call to action
Ahead of COP, a coalition of more than 200 companies signed A Call to Action for Shipping Decarbonization, calling on governments to commit to decarbonizing shipping by 2050. This is a great example of how net-zero is the new norm emerging for shipping.
Declaration of Zero Carbon Shipping
Fourteen countries have signed the Declaration on Zero Emission Shipping by 2050. This declaration encourages international collaboration for industry decarbonization.
Global Methane Pledge
The Global Methane Pledge co-authored by the European Commission and the US to reduce global methane emissions by at least 30 percent from 2020 levels by 2030 was signed by more than 100 countries and is also likely to impact the attractiveness of LNG in this decade and beyond.
Global Carbon Levy
Several industry associations support a global carbon levy and decarbonized shipping by 2050. The ICS and Intercargo have put forward a comprehensive proposal for a global levy on carbon emissions from ships, in what would be a first for any industrial sector. In the proposal, the levy would be based on mandatory contributions by ships trading globally, exceeding 5,000 gross tonnage, for each tonne of CO2 emitted. The money would go into an ‘IMO Climate Fund’ which, as well as closing the price gap between zero-carbon and conventional fuels, would be used to deploy the bunkering infrastructure required in ports throughout the world to supply fuels such as hydrogen and ammonia, ensuring consistency in the industry’s green transition for both developed and developing economies.
ITF Support
International Trade Workers’ Federation (ITF) supports zero-emission shipping by 2050 and a price on carbon. In the position paper “The green horizon we see beyond the big blue”, ITF sets out eight ‘fundamental principles for a just transition’ to make sure the decarbonization of the industry includes workers’ voices, as the industry tests alternative fuels, redesigns skills and career pathways, and shifts employment from fossil fuels to alternative fuel bunkering systems.
Mission Innovation Shipping Mission
Mission Innovation is a global initiative to catalyze action and investment in research, development and demonstration to make clean energy affordable, attractive and accessible to all this decade. This will accelerate progress towards the Paris Agreement goals and pathways to net zero. MI is a public-private partnership that aims to have zero-emission fuels powering at least 5% of the global deep-sea fleet by 2030. It is a global initiative of 22 countries and the European Commission (Representing EU). Their report was issued on November 8.
coZEV
Cargo Owners for Zero Emission Vessels (coZEV) with leading container customers including Amazon, Unilever and IKEA committed to only using zero-emission shipping by 2040.
Poseidon Principles
The 28 banks that have signed up to The Poseidon Principles state that they will align with a full zero-emission trajectory in 2022.
Dhaka-Glasgow Declaration
Fifty-five countries behind the Dhaka-Glasgow Declaration call on Zero Emission Shipping no later than 2050. The declaration calls for a mandatory GHG levy on international shipping. The declaration was an outcome of the Climate Vulnerable Forum, a forum of 55 climate-vulnerable nations from Africa, Asia, the Caribbean, Latin America, the Middle East, and the Pacific.
First Movers Coalition
The First Movers Coalition is a group of forward-thinking companies ready to jumpstart the global demand for critical emerging solutions, helping to mobilize the necessary investments and reduce costs. Members will use their global purchasing power to create new markets for these emerging technologies. The coalition, with cargo owners are committing to shipping 10% of their cargo using zero-emission fuels by 2030, and shipowners and charterers committing to 5% of their fuel use to be zero emission by 2030.
Clydebank Declaration
The Clydebank Declaration with 22 governments committing to establishing the first green corridors across main deep sea routes between some of the world’s biggest ports by 2030. The signatories will support the decarbonization of the shipping industry and its fuel supply through the eco-friendly shipping corridor project, forming partnerships and involving ports, operators and other entities along the value chain. They will explore opportunities to solve issues arising during the formation of zero-emission corridors, which include regulatory frameworks, incentives and information sharing. The 22 initial signatories to the initiative commit to develop technology, expertise and port infrastructure that will allow key international shipping routes to go zero-carbon, as part of a strategy to decarbonize the entire industry by 2050.
The Getting to Zero Coalition, where Odfjell is a member and participate, have prepared a study on the use of green corridors to cut through this complexity and accelerate the transition to zero-emission shipping.
The Just Transition Maritime Task Force
To support seafarers as the shipping industry pursues its climate goals, the ICS, ITF and Global Compact joined forces to create the Just Transition Maritime Task Force. The International Labour Organization (ILO) and the International Maritime Organization (IMO) will also take part in the task force. The task force will protect workers and their communities through the transition to green shipping. It will provide policy recommendations to ensure an equitable, people-centered transition, focusing in particular on developing economies.
