As is already widely known in the maritime industry, the IMO MEPC 83 has agreed on a package of greenhouse gas (GHG) reduction measures, called the ‘IMO net/zero framework’. It is expected that these measures will be approved as amendments to MARPOL Annex VI at an extraordinary session of the MEPC to be held in October 2025.
The package includes a fuel standard to reduce GHG intensity (GFI) and likely a compliance-based emissions pricing mechanism. Instead of a flat levy, as developed by the shipping industry and supported by over 60 IMO Member states, penalties for under-compliance may fund incentives for using zero/near-zero (ZNZ) fuels and technologies.
It is unclear if the proposed reduction measures will be accepted as a global system or if regional or even unilateral trading schemes will remain in effect.
Further analysis of the full effects of the proposed measures is needed, and the Bahamas Shipowners Association (BSA) will keep its Members informed.
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