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IBIA: IMO’s revised GHG strategy taking shape

Discussions at ISWG-GHG 14 were by no means conclusive, but there appears to be growing consensus around several key elements; IBIA observed growing support for a 100% decarbonisation target for 2050.

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The International Bunker Industry Association (IBIA) on Monday (27 March) released an article on its observations of the 14th session of the Intersessional Working Group on GHG Emissions:

Negotiations continued at the IMO last week as the UN body strives to define how quickly greenhouse gases (GHG) from international shipping should be eliminated, and the regulatory tools that should be adopted to achieve it.

The 14th session of the Intersessional Working Group on GHG Emissions (ISWG-GHG 14), meeting from 20 to 24 March, was tasked with further developing the draft revised IMO Strategy on reduction of GHG emissions from ships, and associated policy instruments to ensure the ambitions set out in the strategy are met.

Progress is critical because, in July this year, all eyes will be on the 80th session of the IMO’s Marine Environment Protection Committee (MEPC 80) to adopt a more ambitious GHG strategy than the IMO’s initial GHG Strategy from 2018. The initial strategy calls for a 50% reduction of all GHG emissions from international shipping by 2050 (compared to 2008), and a reduction in the carbon intensity (CO2 emitted per transport work) of 40% by 2030 and 70% by 2050.

The discussions at ISWG-GHG 14 were by no means conclusive, but there appears to be growing consensus around several key elements.

This is what IBIA has observed during last week’s negotiations:

Levels of ambition in the 2023 GHG strategy

  • There is growing support for a 100% decarbonisation target for 2050 (up from 50% in the 2018 strategy). Discussions are ongoing as to whether that should be “phasing out GHG emissions” from shipping, or achieving “net zero”. Both take full lifecycle emissions (well to wake) into account.
  • Opinions are more divided regarding whether there should be new and more ambitious targets for 2030. Several want to keep the current ambition to reduce CO2 emissions per transport work by at least 40% by 2030, while some want this to be increased to at least 65%.  There was also a proposal to aim for a 37% reduction of overall GHG emissions from shipping by 2030.
  • There is some support for requiring a 5% uptake of alternative fuels by 2030 to kick-start the energy transition. However, others want to focus on the energy used by global shipping at this stage.
  • Several are arguing for an intermediate 2040 overall CO2 emission reduction target to ensure the 2050 target is achieved. Reductions of 50%, 80% and 96% compared to 2008 were discussed for 2040. Others prefer that intermediate targets in 2030 and 2040 should serve as checkpoints towards the 2050 level of ambition.

Policy tools to support the levels of ambition

Referred to at the IMO as a “basket of measures” – there is broad support for these to comprise both economic elements to reduce the price gap between fossil fuels and low-carbon alternatives, and technical elements to promote a gradual decrease of the GHG intensity of marine fuels. There was significant support to include the following elements:

  • Phasing in a GHG fuel standard, possibly requiring a 5% uptake of alternative fuels by 2030 in the 2023 revised GHG strategy (see above). It is worth noting that this proposal would help align IMO policies with the European Union’s FuelEU Maritime policy, which now looks set to require ships covered by that regulation to use at least 2% renewable and low carbon fuels from 2025 onwards, increasing to 6% from 2030 onwards, increasing further every five years.
  • Policies should be based on full lifecycle emissions (well to wake), supported by the LCA Guidelines developed by the IMO.
  • Putting a price on carbon emissions. Most support a flat rate as opposed to a carbon trading system where the price of carbon will fluctuate. Initial proposals range from $50 to $100 per tonne of CO2 emissions. The exact level of such a carbon levy will require further discussion.
  • Finding a way to incentivise early movers through some form of rebate or reward (making investments in ships that can use alternative fuels and technologies less risky/more attractive).
  • Providing financial and technical support to developing countries, to ensure an equitable and fair transition. Impact on states of any measure needs to be assessed.
  • While there is little support for the IMO to make regulations for so-called “Green Corridors”, it could be a means for individual countries to assist in facilitating uptake of alternative fuels, and should be promoted by the IMO.

 

Photo credit: IBIA
Published: 28 March, 2023

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Environment

Singapore, Indonesia and Malaysia conduct table-top exercise to strengthen oil spill response

Exercise focused on several aspects including collaboration between government agencies and oil spill response firms to optimise oil spill response resources for incidents in Straits of Malacca and Singapore.

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The Maritime and Port Authority of Singapore (MPA) on Tuesday (11 February) conducted a table-top exercise (TTX) with Indonesia and Malaysia to enhance regional coordination and strengthen response capabilities for oil spills. The exercise brought together over 20 representatives from MPA, Indonesia’s Directorate General of Sea Transportation, Malaysia’s Environment Department, and oil spill response experts from ITOPF. As part of Singapore’s chairmanship of the Revolving Fund Committee (RFC) from April 2022 until March 2027, MPA led the TTX to foster collaboration between the littoral States of Indonesia, Malaysia and Singapore. The RFC, established through a memorandum of understanding (MOU) between the three littoral States and the Malacca Strait Council (MSC) in 1981, is a funding mechanism allowing each littoral State to draw cash advance from the Fund to combat oil spill from ships in the Straits of Malacca and Singapore (SOMS). The exercise focused on coordination procedures to ensure swift and clear communication between the littoral States during an oil spill incident, rapid deployment of oil spill response assets by the littoral States, and collaboration between government agencies and oil spill response companies to optimise oil spill response resources for incidents in the SOMS. The response strategies and asset deployment plans tested during the TTX will be exercised during a Ground Deployment Exercise between the three littoral States and ITOPF in 2026. Photo credit: Maritime and Port Authority of Singapore Singapore, Indonesia and Malaysia conducts table-top exercise to strengthen oil spill response

The Maritime and Port Authority of Singapore (MPA) on Tuesday (11 February) conducted a table-top exercise (TTX) with Indonesia and Malaysia to enhance regional coordination and strengthen response capabilities for oil spills. 

The exercise brought together over 20 representatives from MPA, Indonesia’s Directorate General of Sea Transportation, Malaysia’s Environment Department, and oil spill response experts from ITOPF.

As part of Singapore’s chairmanship of the Revolving Fund Committee (RFC) from April 2022 until March 2027, MPA led the TTX to foster collaboration between the littoral States of Indonesia, Malaysia and Singapore. 

The RFC, established through a memorandum of understanding (MOU) between the three littoral States and the Malacca Strait Council (MSC) in 1981, is a funding mechanism allowing each littoral State to draw cash advance from the Fund to combat oil spill from ships in the Straits of Malacca and Singapore (SOMS).

The exercise focused on coordination procedures to ensure swift and clear communication between the littoral States during an oil spill incident, rapid deployment of oil spill response assets by the littoral States, and collaboration between government agencies and oil spill response companies to optimise oil spill response resources for incidents in the SOMS.

The response strategies and asset deployment plans tested during the TTX will be exercised during a Ground Deployment Exercise between the three littoral States and ITOPF in 2026.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 12 February, 2025

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LNG Bunkering

South Korea’s HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping.

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South Korean HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction (HJSC) has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping. 

The contracted vessel is a large-scale LNG bunkering ship measuring 144 meters in length, 25.2 meters in width, and 12.8 meters in depth. It is capable of supplying up to 18,000㎥ of LNG in a single operation to LNG-fuelled ships. 

Equipped with two independent LNG tanks certified by the International Maritime Organization (IMO), the vessel features a dual-fuel propulsion system that allows it to operate on both eco-friendly LNG and marine diesel oil. This advanced system ensures both stability and operational efficiency while effectively reducing carbon emissions.

Yoo Sang-cheol, CEO of HJSC, said, “As global LNG demand and supply continue to grow, the LNG bunkering vessel market will see steady expansion.” 

“We will focus on strengthening our expertise in building eco-friendly, high-value-added ships, securing a competitive edge that aligns with our legacy as a leader in shipbuilding.”

This achievement follows the company's success in 2014 when it built the world’s first 5,100㎥ LNG bunkering vessel for Japan’s NYK Line.

“This accomplishment also reinforces South Korea’s shipbuilding industry's efforts to enhance competitiveness by securing high-efficiency, environmentally friendly vessels in the global market,” HJSC said. 

“Notably, with the anticipated expansion of oil and natural gas drilling and the resumption of LNG exports under the second Trump administration in the US, the market for crude oil carriers, LNG carriers, and LNG bunkering vessels is expected to see significant growth.”

“This trend is likely to benefit the country’s highly competitive shipbuilding industry.”

 

Photo credit: HJ Shipbuilding & Construction
Published: 12 February, 2025

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Bunker Fuel

AMSOL tanker “Uhambo” commences offshore bunkering operations in Algoa Bay

Firm announced that its product tanker Uhambo has started offshore bunkering operations in Algoa Bay, signalling that the service has resumed in the maritime bay of South Africa.

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AMSOL tanker “Uhambo” commences offshore bunkering operations in Algoa Bay

Marine services provider AMSOL recently announced that its product tanker Uhambo has started offshore bunkering operations in Algoa Bay, signalling that the service has resumed in the maritime bay in South Africa.  

“Now flying the South African flag and an important platform for the ongoing training and development of tanker-endorsed South African seafarers, the Uhambo has commenced offshore bunkering operations in Algoa Bay, delivering locally refined marine fuel on behalf of its oil industry client,” the company said in a statement shared with Manifold Times

In November 2024, the South African Revenue Services (SARS) released new protocols including amendments under sections 21, 60, and 120 of the Customs and Excise Act. Some amendments pertain to the storage of imported bonded fuel goods in designated customs and excise storage warehouses.

SARS' move was anticipated to facilitate bunkering to resume off Algoa Bay, which has been shut down since September 2023

AMSOL’s Chief Commercial Officer Graham Dreyden, said: “Our ability to comply with stringent operating regulations and legislation as well as international maritime and marine standards underpins AMSOL’s track record.”

“This is the case for operations in Algoa Bay and we have worked closely with authorities and relevant stakeholders to ensure all legislative requirements for offshore bunkering operations are met.”

AMSOL’s CEO Dan Ngakane said he is positive about the growth of the company and its broader impact. 

“We have acquired five vessels in the last 4 years in order to meet the needs of our clients in the region for reliable and professional, risk managed marine solutions,” he said.

“In leading growth in the South African maritime sector, we remain committed to meeting the highest standards for environmental protection, safety and compliance whilst developing the talent required to keep our industry growing and moving forward.”

AMSOL said it is the only marine services business operating in the region with a proven track record in effective management of risk-mitigated fuel transfers through a portfolio of services that include in-port bunker delivery, offshore bunkering, ship-to-ship fuel transfer services and offshore terminal management.

Related: ENGINE: SARS releases final rules for South Africa’s offshore bunkering
Related: SARS seeks public comments on amendments to bonded bunker fuel storage regulations
Related: South African Revenue Service issues media statement on detention of bunkering vessels
Related: ENGINE: Algoa Bay bunkering at a standstill as authority detains barges – sources
Related: ENGINE: Algoa Bay closure spurs surge in bunker calls at nearby ports

 

Photo credit: AMSOL
Published: 12 February, 2025

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