Participants diverge on IMO adoption delay

: Oil products
25/10/17

Market participants had mixed views on the delay in voting on the adoption of the International Maritime Organization's (IMO) net-zero framework, comprising a global emissions pricing mechanism for international shipping.

Delegates at the IMO's Marine Environment Protection Committee extraordinary meeting postponed the vote on adopting the net-zero framework for a year on Friday during an extraordinary meeting in London.

Some traders and shipowners said that the proposed greenhouse gas (GHG) pricing mechanism is too "optimistic" and that alternative bunker fuel supplies are still scarce. Another participant said the delay was expected, considering opposition from the US and others.

A European market participant also called attention to the existence of regional regulations, such as the FuelEU Maritime and the EU emission trading system. The EU previously said there are review clauses built into existing maritime regulations, which would mean that the EU can review or amend if IMO matches its ambitions.

The International Chamber of Shipping's secretary general Thomas Kazakos said that he is "disappointed" that IMO members were not able to agree on a way forward. "Industry needs clarity to be able to make the investments needed to decarbonise the maritime sector, in line with the goals set out in the IMO GHG strategy", Kazakos added.

Danish industry, business and financial affairs minister Morten Bodskov described the outcome as a "sad day for the green transition", adding that a global agreement is needed "as soon as possible". It is "crucial" for European shipping companies, who need "clear and predictable conditions for the green transition", he said.

Another trader said that the delay was discouraging and claimed that as long as US president Donald Trump is in office, the GHG global pricing mechanism proposal will not be approved. Also, shipowners are making investments in alternative-fuelled vessels, another participant said.

The European Community Shipowners' Associations and the Global Maritime Forum also lamented the outcome.

By Natália Coelho

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Qatar presents 2040 climate target to UN

25/12/04

Qatar presents 2040 climate target to UN

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Idemitsu, Kanematsu start biofuel supply for ships

25/12/03

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25/12/03

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September US base oil production falls 8pc: Correction

25/12/02

September US base oil production falls 8pc: Correction

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