Business

UNCTAD: Decarbonising Shipping: What role for flag states?

Besides exercising regulatory control, it is suggested that flag states view the decarbonisation journey as a business opportunity while development funds are being established.

Published

6 years ago

March 26, 2020

Admin

United Nations Conference on Trade and Development (UNCTAD) on Tuesday (24 March) published an article discussing the role of flag states and possible strategies in the shipping industry’s decarbonisation efforts:

The International Maritime Organization (IMO) member states agreed in 2018 “to reduce the total annual GHG emissions by at least 50% by 2050 compared to 2008” as part of the “initial IMO Strategy on reduction of GHG emissions from ships”.

In order to support achieving this objective, the International Chamber of Shipping (ICS) and other maritime industry associations propose the establishment of a research and development fund to help cut emissions.

This fund is to be financed by a contribution of “two US dollars per tonne of marine fuel oil purchased for consumption”. The private sector-led “Getting to Zero Coalition” writes that “shipping’s decarbonization can be the engine that drives green development across the world.”

The falling costs of net zero carbon energy technologies make the production of sustainable alternative fuels increasingly competitive. Determined collective action in shipping can increase confidence among suppliers of future fuels that the sector is moving in this direction.”

UNCTAD supports the Getting to Zero Coalition and promotes efforts to achieve sustainability, helping developing countries adapt and build resilience in the light of the climate emergency.

According to a working paper by the International Monetary Fund, “the environmental case for a maritime carbon tax is increasingly recognized”. The Environmental Defense Fund argues that “meeting the IMO’s 2050 target represents $50bn to $70bn per year for 20 years spending, but this is also a revenue opportunity”.

The World Bank, also a supporter of the Getting to Zero Coalition, highlights that a large share of this investment opportunity could lie in developing countries.

A large part of these investments will have to be made ashore, including by energy providers and in seaports. As regards ships, their owners will have to invest in the renewal of the fleet, and new technologies.

What does this mean for the flag states where the ships are registered?

Flag states have an important role to play in enforcing IMO rules because they exercise regulatory control (i.e. apply the law and impose penalties in case of non-compliance) over the world fleet on diverse issues, ranging from ensuring safety of life at sea, protection of the marine environment, and the provision of decent working and living conditions for seafarers.

In the context of the implementation of the IMO GHG emissions strategy, flag states will have to ensure that ships are compliant with applicable IMO rules.

In addition, they could also provide incentives for the ships registered under their flag to reduce CO2 emissions, and potentially play a role when it comes to ensuring the collection of future fees or contributions associated with CO2 emissions.

The above-mentioned ICS proposal, for example, suggests that contributions to the proposed fund will be made “commensurate with the ship’s annual fuel oil purchased for consumption, as verified by the flag State.”

Flag states could see such involvement also as a business opportunity, where more transparent and reliable flag states provide better services than others. In addition, many major flag states are themselves also affected by the impacts of climate change.

For example, the Panama Canal is confronted with a shortage of fresh water; Liberia has developed its National Adaptation Plan to mainstream climate change adaptation into planning and budgets; and the Marshall Islands are among the low-lying SIDS most at risk from sea-level rise.[i]

It should thus be in these countries’ self-interest to support the reduction of global green-house gas emissions, including from shipping.[ii]

Status of CO2 emissions: a vessel registry’s perspective

Thanks to data generated from the automatic identification system (AIS) tracking system for ships, including information on each vessel’s characteristics, speed, type of fuel, and ballast situation, it is today possible to calculate estimates for CO2 emissions from each individual ship.

On this basis, ships registered in Panama, Liberia and the Marshall Islands, together, accounted for almost one third (32.96%) of CO2 emissions from shipping in 2019 (Figure 1). The same registries together represent 34.86% of the world total gross tonnage (Table 1).

Photo credit: United Nations Conference on Trade and Development
Published: 26 March, 2020

Mass Flowmeter

Hong Kong backs MFM adoption with voluntary scheme to boost bunkering competitiveness

Hong Kong’s Marine Department launched the Quality Bunker Operator Scheme to encourage bunker operators to install and use mass flow meter systems on their bunker vessels.

Published

4 hours ago

June 4, 2026

Admin

Hong Kong’s Marine Department (MD) on Wednesday (3 June) launched the Quality Bunker Operator Scheme to encourage bunker operators to install and use mass flow meter systems (MFM systems) on their bunker vessels.

MD said the scheme aims to enhance Hong Kong’s bunkering service quality and the competitiveness of Hong Kong ports, thereby further consolidating Hong Kong’s position as an international maritime centre and a major bunkering port.

Under the Scheme, bunker operators of traditional maritime fuel and biodiesel that install and use MFM systems on their bunker vessels, with the MFM systems inspected and certified by an accredited body in accordance with the International Organization for Standardization’s ISO 22192 Standard or equivalent requirements, can apply to the MD for inclusion in the scheme’s “List of Quality Bunker Vessels”, provided they meet the relevant technical and operational requirements.

Details of the bunker vessels successfully included in the List will be published on a dedicated page on the MD’s website for reference by shipping companies and relevant stakeholders.

Participation in the Scheme is voluntary. In addition to receiving recognition from the MD, participating bunker operators will benefit from enhanced corporate image and competitiveness through the adoption of MFM systems, thereby boosting customers’ confidence and helping to create new business opportunities.

A spokesman for the MD, said: “As an international maritime centre supported by our country, Hong Kong has a strategic location adjacent to major international fairways. Coupled with years of development in marine fuel bunkering, Hong Kong possesses rich experience and talent in the field. For many years, Hong Kong has consistently ranked as the seventh-largest bunkering port globally, the second-largest in our country, and the largest in the Greater Bay Area, providing reliable and competitive fuel bunkering services to ocean-going vessels from around the world.

“As the international shipping industry has an increasing demand for accuracy and transparency in bunkering services, service quality and measurement precision in bunkering operations have become important indicators of a bunkering port’s competitiveness. The Scheme will enhance bunkering accuracy and transparency, further enhancing the quality of Hong Kong’s bunkering services.

The spokesman added that comprehensive port services are one of Hong Kong’s key advantages as an international maritime centre.

“We will also mandate the use of MFM systems on all methanol bunker vessels this year to ensure that Hong Kong continues to provide high-quality bunkering services in the era of green maritime fuels.”

Note: The application form for the Scheme can be found on the MD’s website. Interested bunker operators can download the application form from the website or contact the MD’s Green Maritime Fuel Team via email ([email protected]) for details.

Photo credit: Manifold Times
Published: 4 June, 2026

Alternative Fuels

MPA and MSC ink MoU to support adoption of alternative bunker fuels

MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency.

Published

4 hours ago

June 4, 2026

Admin

MPA and MSC ink MoU to support adoption of alternative bunker fuels

The Maritime and Port Authority of Singapore (MPA) on Wednesday (3 June) said it signed a Memorandum of Understanding (MoU) with MSC Mediterranean Shipping Company to strengthen collaboration in maritime decarbonisation, digitalisation, innovation, and manpower development.

The MoU was signed on 25 May 2026 by Mr Ang Wee Keong, Chief Executive of MPA, and Mr Soren Toft, Chief Executive Officer of MSC.

The MoU underscores the shared commitment of MPA and MSC to foster a sustainable, digital, and future-ready maritime sector, while enhancing MSC’s operational and business activities in Singapore. This year also marks the 30th anniversary of MSC establishing its Asia Regional Office and local office in Singapore.

Under the MoU, MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency and operational performance.

MPA and MSC will also collaborate on maritime digitalisation initiatives to improve operational efficiency, including streamlining vessel arrivals and port operations.

On manpower development, MSC will support internship and scholarship opportunities through Singapore Maritime Foundation’s Maritime Outreach Network (MaritimeONE) platform, an industry-led tripartite partnership comprising industry, government and institutes of higher learning that aims to raise awareness of the maritime industry and attract quality talent into the maritime sector.

Mr Ang Wee Keong, Chief Executive of MPA, said: “This partnership reflects the strong collaboration between MPA and MSC in driving sustainability and digitalisation in the maritime sector. By working together on decarbonisation, operational efficiency and talent development, we aim to strengthen Maritime Singapore’s position as a trusted and future-ready global maritime hub.”

Mr Soren Toft, Chief Executive Officer of MSC, said: “Singapore is a strategically important hub for MSC and a key gateway to the broader Asia region. As we mark 30 years in Singapore, this MOU reinforces our long-term commitment to strengthening our presence here. MSC and Singapore are closely aligned on the priorities shaping the future of global shipping, and we look forward to deepening this partnership to drive the continued growth and resilience of the maritime industry.”

Photo credit: Maritime and Port Authority of Singapore
Published: 4 June, 2026

Emissions reporting

StormGeo and OceanScore link emissions data, compliance workflows

Cooperation combines StormGeo’s expertise in operational vessel and emissions data with OceanScore’s expertise in emissions compliance workflows across EU ETS, FuelEU Maritime and UK ETS requirements.

Published

4 hours ago

June 4, 2026

Admin

StormGeo and OceanScore link emissions data, compliance workflows

Weather intelligence and decision support solutions provider StormGeo and Hamburg-based technology platform OceanScore on Wednesday (3 June) said they have deepened their ongoing cooperation through the signing of a collaboration agreement during Posidonia 2026 in Athens on 2 June.

The cooperation combines StormGeo’s expertise in operational vessel and emissions data with OceanScore’s expertise in emissions compliance workflows across EU ETS, FuelEU Maritime and upcoming UK ETS requirements.

Together, the companies aim to help shipping companies seamlessly navigate increasing regulatory complexity more efficiently — from emissions reporting and data validation to compliance exposure management, pooling and financial settlement.

As emissions regulation becomes an increasingly important part of commercial shipping operations, the need for reliable operational data and streamlined compliance processes continues to grow. The cooperation between StormGeo and OceanScore is designed to support shipping companies with more connected, transparent and actionable processes across operational and commercial teams.

“From the outside, companies like StormGeo and OceanScore may sometimes be perceived as competitors because both operate around emissions and compliance workflows,” said Albrecht Grell, Managing Director at OceanScore.

“But in reality, the industry increasingly needs both perspectives working together: trusted operational emissions data on one side and commercial compliance execution on the other. Our cooperation reflects that shipping companies are no longer looking for isolated solutions — they need connected processes, automated across different systems and reliable decision-making throughout the full compliance chain.”

By connecting validated operational emissions data with commercial compliance management, the cooperation supports workflows across:

emissions reporting and validation
compliance management across EU ETS, FuelEU Maritime and upcoming UK ETS requirements
exposure visibility and cost transparency
pooling, settlement and financial processes

The cooperation also aims to improve commercial transparency and coordination across operational and commercial stakeholders.

“StormGeo plays a central role in helping shipping companies turn operational vessel and emissions data into trusted, decision-ready insights,” said Espen Martinsen, Chief Commercial Officer at StormGeo.

“As emissions regulations become more complex, this data is essential for transparent and efficient compliance management. By working with OceanScore, we can help customers connect StormGeo’s validated operational data with commercial compliance processes, creating a more integrated and practical approach to emissions management.”

The signing ceremony took place at the StormGeo booth during Posidonia 2026 in Athens and was attended by representatives from both companies.

Both companies expect the cooperation to continue evolving alongside upcoming regulatory developments, including FuelEU Maritime, EU ETS, the upcoming UK ETS and future emissions-related frameworks affecting global shipping.

Photo credit: StormGeo
Published: 4 June, 2026