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IBIA comments on IMO’s GHG strategy to MEPC 78

It is clear from MEPC 78 that revision of IMO’s initial GHG Strategy to decide on levels of ambition and discussions on further regulations to meet those ambitions will be challenging, says IBIA.

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The International Bunker Industry Association (IBIA) on Tuesday (14 June) published an article commenting on IMO’s GHG strategy revision, including IMO’s levels of ambitions (GHG reduction targets), that were discussed at MEPC 78:

There are strong signals that the revision of the IMO’s Initial Strategy on the reduction of GHG emissions from shipping will bring much more ambitious targets, significantly speeding up the sector’s transition to a carbon-neutral future. Agreement on the revised IMO GHG Strategy is still some way off.

The IMO’s Marine Environment Protection Committee continued discussions on the revision of IMO’s greenhouse gas (GHG) strategy at its 78th session last week (MEPC 78, 6-10 June), making no decisions, but after intense debate agreed to holding to hold an intersessional GHG working group (ISWG-GHG 13) before the next session (MEPC 79, 12-16 December 2022). The revised strategy is due to be approved at MEPC 79 with a view to adopting a revised strategy in mid-2023 at MEPC 80. There will be further sessions of the working group prior to MEPC 80 as well.

MEPC 78, like MEPC 77, once again saw a large number of Member States supporting a complete phasing out of GHG emission from shipping by 2050, compared to the current 50% reduction target. 

There were also proposals to strengthen the level of ambition for 2030, and to introduce additional milestones with targets to be met between 2030 and 2050.

There was, however, opposition to this approach from a significant number of Member States. They argued that it is premature to strengthen 2030 targets, that phasing out GHG from shipping by 2050 is not a realistic target, and would have a heavy impact on international trade and possible restrict trade. 

The impacts on developing states from the costs associated with the energy transition was stressed again and again. Increased freight rates as ships face higher fuel bills, and the cost of setting up production and supply infrastructure for carbon neutral fuels are major concerns.

Moreover, there were calls for the revision of the IMO’s GHG strategy to be evidence-based, not just focusing on targets, with a need for more data and a feasibility study before setting realistic goals.

The above, in a nutshell, summarises some of the main lines of division between Member States at the IMO. There are also varying views on the specific policies to support the IMO’s levels of ambitions (GHG reduction targets), such as how to calculate emissions from shipping (well to wake, or only tank to wake); the exact form, function and magnitude of market-based measures; and various other proposals for regulations to put shipping and the marine fuel supply industry on a path to reach short, mid-term and long-term GHG reduction targets.

IBIA took the floor during MEPC 78 to express our views on some of these issues.  

Regarding the calls for the revision of the IMO’s GHG strategy to be evidence-based, IBIA’s IMO representative, Unni Einemo, said: “We recognise the desire and need for analysis, reviews and impact assessments associated with the IMO’s GHG strategy, but we must also recognise that it is not possible at this stage to fully and accurately predict availability of solutions in 2050, or the full impact of 2050 reduction targets. Nevertheless, various stakeholders need clear targets to reach for; we need that certainty to have confidence in the investments required. The IMO has committed to adopting a revised GHG Strategy in 2023, so we believe an ISWG dedicated to this subject will be needed to make progress, which is evident from the various concerns raised. Moreover, agreeing now to dedicate an ISWG to the revision of the IMO GHG Strategy does not pre-empt the outcome.”

IBIA has not stated a specific position regarding the level of ambition for 2050, but we have noted the proposals for a “zero emissions” target, and therefore lent our support to a proposal from ICS.

Einemo told MEPC 78: If, as many have proposed, the revised GHG strategy ends up with an ambition to completely phase out GHG emissions from international shipping by 2050, we support the change of terminology to using “net zero” GHG emissions as outlined in MEPC 78/7/2 by ICS. This gives the flexibility to take full well to wake lifecycle emissions into account, which we see as a crucial element to ensure the IMO’s GHG policy is holistic and not causing increased GHG emissions elsewhere.”

IBIA also took the opportunity to comment on other proposals.

“Regarding MEPC 78/7 by the WSC, this document contains several elements that could help us in the task of reducing GHG emissions from shipping. For example, the idea of Green Corridors could be aligned with proposals for the phasing in of a GHG fuel standard, which in our view is an element that will be needed to send a clear demand signal.

In a similar vein, we note with interest the proposal in paragraph 16 of MEPC 78/7/24 by the US, to consider new formulations for the levels of ambition, such as calling for a percentage share of the deep-sea fleet to run on zero-emission fuels.

Both the Green Corridor concept and the US proposal would work alongside the idea of combining a GHG fuel standard requirement with pooling, meaning a group of ships could achieve such targets rather than individual ships. Pooling could provide the same overall net emission reductions from international shipping, but facilitate a gradual uptake in the global fleet of fuels and technologies that cannot be used directly by existing ships due to major technical barriers.

We wonder if there is also a way to combine pooling and Green Corridors with elements proposed by Japan in MEPC 78/7/5 to reward early adopters of low or zero emission ships, to provide incentives for first movers.

Combining these various elements could serve the purpose of providing certainty of demand for those investing in production and supporting supply infrastructure of carbon-neutral fuels and technologies, while achieving specific GHG reduction targets for the global fleet in a way that allows the gradual phasing in of ships that are ready to use new fuels and technologies,” Einemo told MEPC 78.

It is clear from MEPC 78 that the revision of the IMO’s initial GHG Strategy to decide on levels of ambition will be challenging, as will discussions on the further regulations that will be needed to meet those ambitions.

 

Photo credit: IBIA
Published: 17 June, 2022

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LNG Bunkering

Singapore: FueLNG achieves 400th LNG bunkering operation milestone

Bunker tanker “FueLNG Bellina” successfully delivered LNG bunker fuel to “BYD Shenzhen”, the world’s largest LNG-fuelled car carrier at Singapore anchorage during its maiden voyage.

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Singapore: FueLNG achieves 400th LNG bunkering operation milestone

Singapore’s licensed LNG bunker supplier FueLNG on Thursday (15 May) announced the successful completion of its 400th LNG ship-to-ship (STS) bunkering operation in the republic.

FueLNG, a joint venture between Keppel Offshore & Marine and Shell Eastern Petroleum Pte Ltd, marked the milestone with bunker tanker FueLNG Bellina successfully refuelling BYD Shenzhen, the world’s largest LNG-fuelled car carrier, at Singapore anchorage during its maiden voyage.

“With a capacity of 9,200 vehicles and equipped with dual-fuel LNG propulsion, the BYD SHENZHEN represents the next generation of low-emission maritime transport,” it said in a social media post. 

Shell said it supported BYD Shenzhen on its maiden voyage as the supplier of the LNG bunker fuel. 

“Like all LNG dual fuel vessels, BYD Shenzhen is on the pathway to net zero emissions. She can take bio-LNG, and in the future e-LNG, in her fuel mix for further emission reduction and regulatory compliance,” it said in a separate social media post. 

 

Photo credit: Shell
Published: 16 May, 2025

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Biofuel

Hong Kong: CPN hits new record for China’s largest B24 biofuel bunkering operation

Chimbusco Pan Nation delivered 6,300 mt of B24-VLSFO in Hong Kong to boxship “XIN LOS ANGELES” on 15 May, exceeding its previous record of 5,500 mt delivered in February 2025.

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Hong Kong: CPN hits new record for China's largest B24 biofuel bunkering operation

Hong Kong-based bunker supplier Chimbusco Pan Nation Petro-Chemical (CPN) on Friday (16 May) said it has set a record for China’s largest B24 marine biofuel bunkering operation.

CPN said it delivered 6,300 metric tonnes (mt) of B24-VLSFO in Hong Kong to container ship XIN LOS ANGELES on 15 May. 

The supply exceeded CPN’s previous record of 5,500 mt delivered to the same ship in February 2025.

“This collaboration reinforces CPN’s ability to execute large-scale marine biofuel bunkering with precision and reliability,” the company said in a social media post.

“By consistently supplying large volumes of B24 marine biofuel, CPN supports reduced carbon emissions and sustainable shipping practices globally.”

Related: CPN achieves largest B24 bio bunker fuel delivery in Hong Kong and China

 

Photo credit: Chimbusco Pan Nation Petro-Chemical
Published: 16 May, 2025

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Alternative Fuels

St1 delivers first locally produced biomethane to Swedish maritime sector for bunkering

St1 and its venture St1 Biokraft delivered their own Swedish-produced liquefied biomethane to Terntank’s vessel “Tern Ocean” in a bunkering operation at Port of Gothenburg.

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St1 delivers first locally produced biomethane to Swedish maritime sector for bunkering

Finnish energy company St1 and its venture St1 Biokraft delivered their own Swedish-produced liquefied biomethane, also known as bio-LNG, to the local maritime sector for the first time, according to Port of Gothenburg on Thursday (15 May). 

Terntank’s vessel Tern Ocean was bunkered with the biomethane at the Port of Gothenburg. 

St1 and St1 Biokraft are now aiming to become large-scale suppliers of biomethane for shipping, while the Port of Gothenburg continues to pursue its goal of becoming Scandinavia’s primary bunkering hub for alternative fuels.

The bunkering operation recently carried out at quay 519 in the Port of Gothenburg was an important pilot test for St1 and St1 Biokraft as suppliers of biomethane to the maritime sector. The operation also served as a pressure test of the collaboration required across all parts of the value chain, with Terntank, gas infrastructure owner Nordion Energi, and the producers themselves all playing crucial roles.

“In order to accelerate the maritime sector’s transition, it is essential that all actors across the value chain pull in the same direction, cooperate, and translate ambitions into practice. We are pleased to have all of this in place at the Port of Gothenburg,” said Therese Jällbrink, Head of Renewable Energy at the Port of Gothenburg.

“Liquefied biomethane is an important part of the fuel palette that must be available to support the shipping industry’s transition. It is one of the fuels the Port of Gothenburg is working with within the framework of green shipping corridors, aimed at creating the conditions for fossil-free logistics chains. This bunkering operation brings us another step closer to our ambition of becoming Scandinavia’s primary bunkering hub for alternative fuels.”

St1 and St1 Biokraft have ambitions to become large-scale suppliers of liquefied biomethane for the maritime sector, with several new production facilities planned across Sweden.

In 2026, energy infrastructure company Nordion Energi will build a liquefaction facility for biomethane at the Port of Gothenburg, which will be connected to the West Sweden gas grid. With the facility in place, a new opportunity will be created for biomethane producers connected to the gas network to reach the maritime market.

“Once the liquefaction plant is completed, we will have a solid solution in place at the Port of Gothenburg. This is a strategic step towards our goal of scaling up and offering competitive liquefied biomethane to the shipping sector, thereby taking a leading position in this segment,” said Ted Gustavsson, Head of Value Chain at St1 Biokraft.

 

Photo credit: Port of Gothenburg
Published: 16 May, 2025

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