From 2025 the focus will shift to calculating lifecycle GHG emissions, creating an additional urgency for a green supply chain to control emission costs
For shipowners the pressure is on to build and run compliant, low emission vessels and to make sure charterers know how to run these efficiently.
The IMO Strategy will be revised in 2023, possibly strengthening its emission-reduction ambitions. This will be followed by developing the next wave of regulations including market-based measures setting a price on CO2 and a requirement to account for well-to wake GHG emission intensity of fuels.
The EU has proposed to include shipping in the EU Emissions Trading System (EU ETS). The FuelEU Maritime regulation which aims to increase the use of carbon-neutral fuels through an increasingly stringent well-to-wake GHG intensity requirement. These proposals may be finally adopted later in 2022 and take affect from 2024 and 2025, respectively.
Government and authority incentives are necessary to encourage first movers to invest and be part of pilot initiatives such as green corridors, which can form the basis of a global zero-carbon fuel market.