Connect with us

Business

IBIA guide to IMO’s latest GHG measures

Initial short-term measures include tightening existing mandatory energy efficiency measures, and introducing new technical and operational efficiency measures.

Admin

Published

on

IBIA

The International Bunker Industry Association (IBIA) in early December published a summary of a package of measures taken at MEPC 75 to control GHG emissions from shipping that would be applicable to the bunker industry:

The 75th session of the IMO’s Marine Environment Protection Committee was heavily dominated by discussion about the adequacy of steps to deliver greenhouse gas (GHG) reduction policies. The outcomes were a compromise, which inevitably means that few were completely satisfied.

A package of measures (see point 2 below) that was up for approval at MEPC 75 had already been discussed at length in October during an intersessional GHG meeting, where many member states criticised it for being too weak, but reluctantly accepted it as the best compromise possible at this time, largely thanks to a review clause to assess how effective the measures have been. The review should be completed by 2026. 

One of the elements that makes agreement so hard to reach is concern about the impact on states from any measures adopted by the IMO, in particular on developing and remote countries whose economies and trade opportunities, as well as imports of essential goods, depend heavily on international shipping. All measures are required to undergo an impact assessment.

The measures that were adopted and agreed at MEPC 75 are in line with the IMO’s initial greenhouse gas strategy. The first step is to identify and implement short term measures to meet the first stated ambition, which is to reduce CO2 emissions per transport work as an average across international shipping by 40% by 2030 compared to a 2008 baseline. 

This will not in itself guarantee that overall CO2 emissions from shipping fall as the initial steps are aimed at reducing the carbon intensity of ships. If global trade and transport of goods grows by more than 40% to 2030, CO2 emission from shipping could also grow even if the 40% carbon intensity reduction target is met.

The initial short-term, goal-based measures to reach the 2030 ambition include tightening existing mandatory energy efficiency measures, and introducing new mandatory technical and operational efficiency measures.

Below is a summary of steps taken at MEPC 75 to control GHG emissions from shipping:

  1. Adopted amendments to MARPOL Annex VI on early application of Phase 3 of the Energy Efficiency Design Index (EEDI) – bringing it forward from 2025 to 2022 for selected ship types. Entry into force will be 1 April, 2022 but early implementation is encouraged.
  2. Approved draft amendments to MARPOL Annex VI to allow for a package of mandatory GHG reduction measures that will apply to existing ships. If adopted at MEPC 76 they will enter into force in 2023. The measures consist of:
  • Energy Efficiency Existing Ship Index (EEXI) applicable to all existing ships. Once the EEXI is verified the ship should get an Energy Efficiency Certificate.
  • Carbon Intensity Indicator rating (CII) for ships above 5,000 GT, with an annual A to E rating system which needs to be verified by its Administration, which will issue a “Statement of Compliance”. A ship that has an E-rating for any single year or a D-rating for three consecutive years will be required to develop a corrective action plan that will be part of the SEEMP and subject to approval.
  • Enhanced Ship Energy Efficiency Management Plan (SEEMP) which will be subject to approval and audits.
  1. Agreed on Terms of Reference for a comprehensive impact assessment of the draft measures in point 2. This is required under the IMO’s initial GHG strategy and repeatedly referred to by IMO Member States that worry about the impact of measures on the cost trade for developing and remote countries.
  1. Approved IMO’s Fourth GHG Study 2020The study provides a GHG inventory for 2012-2018, carbon intensity calculation and emission projections to 2050. It estimates that under a BAU scenario, CO2 emissions from shipping could increase by 90-130% to 2050, which clearly demonstrates that policy measures and low carbon innovations will be required.
  1. Had a lengthy discussion about a proposal from shipping industry organisations for an International Maritime Research and Development Board (IMRB) to overlook an International Maritime Research Fund (IMRF) expected to raise approximately $5 billion via a mandatory R&D contribution of $2 per tonne of fuel oil purchased for consumption. Also included in the debate at MEPC 75 were four papers submitted with comments on the IMRB/IMRF proposal.

While nobody objected to the need for R&D to identify and develop technologies and fuels that will be needed to get shipping towards the IMO’s stated ambition of cutting CO2 emissions from shipping by at least 50% by 2050, there were many concerns and questions about the proposal. Many commented that it was not sufficiently clear about legal structure, the collection of funds, and the management and allocation of funds. There were reservations about the IMO mandating a fee for a fund not directly under the IMO’s control. The need to assess the impact on states was also raised. Several pointed out the need to avoid duplication of other R&D efforts which are already well underway, both in the private sector and elsewhere.

In summary, there was no definitive yes or no to the IMRB/IMRF proposal, only an invitation for interested parties to submit papers to MEPC 76 to comment on it in more detail, noting the concerns raised at MEPC 75, or submit alternative proposals.

  1. Adopted resolution MEPC.327(75) on voluntary National Action Plans to reduce GHG emissions from international shipping.The National Action Plans could include: improving domestic institutional and legislative arrangements for the effective implementation of existing IMO instruments, developing activities to further enhance the energy efficiency of ships, initiating research and advancing the uptake of alternative low-carbon and zero-carbon fuels, accelerating port emission reduction activities, fostering capacity-building, awareness-raising and regional cooperation and facilitating the development of infrastructure for green shipping.

Photo credit and source: IBIA
Published: 11 December, 2020

 

Continue Reading

Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

Admin

Published

on

By

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

Continue Reading

Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Admin

Published

on

By

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

Continue Reading

Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

Admin

Published

on

By

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

Continue Reading
Advertisement

OUR INDUSTRY PARTNERS



Trending