Global shipping deal will cut carbon emissions

A global deal is helping ships steer in the right direction to help fight climate change. That’s the view of Midlands green energy expert Ron Fox after world countries recently agreed to tackle shipping emissions – following nearly ten years of negotiations.

“This is welcome news,” said Midlands green energy expert Ron Fox, “as shipping accounts for around 3 per cent of global emissions. But unlike many other sectors it has struggled to reduce its carbon footprint over the last decade and is reliant on fossil fuels such as diesel.”

Under an agreement, which was passed at the UN’s International Maritime Organisation (IMO) meeting, ship owners from 2028 will have to use increasingly cleaner fuels or face fines.

The deal, which covers the vast majority of the world’s commercial shipping, means it is now the first industry in the world with internationally mandated targets to reduce emissions.

It will require owners of large international vessels to increase their use of less carbon-intensive fuels or face a penalty of up to $380 per tonne of carbon dioxide emissions they emit from burning fuel. Nearly 90 per cent of the world’s goods are moved via ship and the industry continues to grow in line with trade volumes.

Even after a decade of debate, the decision was nearly derailed at the last minute. Although the final agreement was passed, it had to be put to a vote – an unusual move for UN bodies that usually agree measures by consensus.

The vote was requested by Saudi Arabia, who did not support the agreement, as did a dozen other oil-producing nations, including Russia.

Some island states also abstained after their support for a blanket carbon tax or levy – which would have been a world first – was dropped.

Although these countries opposed the proposal, they will be bound to implement it because they are members of the IMO.

Now the committee has agreed this measure, it is expected to be formally adopted in October this year.

It is estimated that the agreement could achieve an 8 per cent reduction in emissions for the sector by 2030, according to the maritime consultancy UMAS. This would be short of the IMO’s target agreed two years ago to cut emissions by 20 per cent by the end of the decade.

China and Brazil had previously raised concerns that a levy could result in a significant price increase for basic goods like food. Both countries backed the final deal.

Any money raised from the penalties will be put into a “Net Zero” fund, with money spent on greener fuels and supporting developing countries. It is this “redistribution” that prompted the US delegation to pull out of the talks.

Although the US move was at odds with its long-held position at the IMO, it was in keeping with President Trump’s push back on climate action, such as withdrawing the US from the Paris Climate Agreement.

US cargo ships represent only 0.57% of worldwide commercial shipping tonnage. So, even if it decided not to implement the new agreement, experts believe it is unlikely to make a significant difference to the funds raised.

But Ron, of Noreus Ltd on the University of Keele Science and Innovation Park, said there were still problems ahead for the shipping industry as moving ships away from fossil fuels to green fuels will be very expensive. “I just hope a solution can be worked out,” he concluded.

For those wanting more advice about green energy, call Ron on 01782 756995 or contact us here

Caption: Going in the right direction – global nations have agreed to tackle shipping emissions to help fight climate change following nearly ten years of negotiations.