IMO Regulations on Sustainability
11% CO2 reduction in 2026 - 70% reduction in 2050
IMO is responsible for regulating international shipping and aims for 11% carbon intensity reduction per 2026, 40% in 2030 and 70% reduction in 2050. They also aim for 50% absolute emission reductions by 2050. Virtually all rules and regulations apply to vessels of 5.000 GT and above. The most important rules and regulations for shipowners to comply with are SEEMP (includes DCS and CII), EEXI/EEDI and Emission Controlled Areas (ECAs).
Frequently Asked Questions
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The relative emissions apply to vessels and shipowners. That means a 70% reduction of emissions - as measured by CII in grams per mT * nautical mile - needs to be reduced by 70%. The 50% reduction applies to all IMO registered vessels, as in the entire world fleet. In such a way both absolute and relative emissions need to be reduced, allowing for an expansion of the world fleet in absolute terms and still significantly reducing emissions for individual vessels.
About IMO
The International Maritime Organization (IMO) is in many regards the most important organization when it comes to rules and regulations for shipping on international waters. The IMO provides a mandatory framework shipowners have to comply with. These even apply within the boundaries of a sovereign state, as compliance to legislation is enforced by both class and flag state.
Since 1973, the “International Convention for the Prevention of Pollution from Ships”, abbreviated as MARPOL, is one of the most important international marine environmental conventions shipowners have to comply with. It is the main international convention covering prevention of pollution of the marine environment by ships from operational or accidental causes, and can therefore be considered the basic set of regulations to comply with regards to environment and sustainability.
The Convention includes regulations aimed at preventing and minimizing pollution from ships - both accidental pollution and that from routine operations - and currently includes six technical Annexes.
1. Annex I addresses the discharge of oil from ships and regulates how and when a ship may discharge oil into the sea.
2. Annex II addresses the discharge or escape of noxious liquid substances, which means chemicals in practice.
3. Annex III addresses harmful substances carried in packaged form, such as freight containers.
4. Annex IV addresses the discharge of sewage from ships.
5. Annex V addresses discharge of garbage from ships into the sea and how and when garbage may be discharged.
6. Annex VI addresses air pollution from ships, including engine emissions, ozone-depleting substances, vapour emissions from oil tankers and shipboard incineration.
The IMO dictates guidelines to limit and reduce greenhouse gas (GHG) emissions from international shipping since 2000, as part of MARPOL VI. The fourth IMO GHG study was published in August 2020 envisages a reduction in carbon intensity of international shipping (a 40% reduction of average CO2 emissions per transport work by 2030 and a 70% reduction by 2050, compared to 2008) and a 50% reduction in total annual GHG emissions from international shipping by 2050, compared to 2008.
More Rules and Regulations
The Global Pricing Dashboard made by the World Bank is one of the most complete overviews carbon pricing initiatives worldwide. 23.17% of all global greenhouse gas emissions were covered in 2022. Only EU ETS aims to incorporate shipping emissions at the moment, others are expected to follow suit.
A global carbon tax has been proposed by an IMO working group, but the costs and effective date are far from known. Learn what is known about the proposed pricing here.
China’s coastal shipping sector is to implement low-carbon marine fuel regulations no later than 2030. Learn more about the low-carbon fuel regulations in China here.
China’s national ETS – the world’s largest in terms of covered emissions – started operating in 2021. Shipping is not included, for the moment. Learn more about ETS here.
Emissions from cruise ships and ferries in World Heritage Fjords are to be zero by 2026 latest. Read more here.
The ETD is the principal taxing scheme used for fossil and low-carbon fuels in EU. Fossil fuels will be taxed more, and renewable low-carbon fuels will receive incentives, including shore power.
EU MRV is the CO2 reporting system in Europe, used for carbon tax determination. It is applicable to vessels of 5000 GT and above. It is expected to apply to 400 GT and above. Learn more about EU MRV here.
ECAs (Emission Control Areas) are sea areas that limit SOx or NOx emissions. Currently there are several ECAs active in North America and Europe. Learn more about ECAs here.
For ships operating outside Emission Control Areas (ECAs), the limit for sulphur content of fuel oil is 0.50% m/m (mass by mass). Learn more about the global sulphur limit for shipping here.
In the Netherlands, ‘Renewable Fuel Units’ (HBEs) are an economic incentive to gradually expand the use of green energy in transport and the reduction of greenhouse gasses. Fossil fuel producers are required to purchase HBEs from green fuel producers. The market is controlled by the Dutch Emission Authority. You can make up to €0.20 per green kWh sold. Learn more about HBEs here.
The Programma Aanpak Stikstof (PAS) is a Dutch law that strictly prohibits the deposition of NOx on environmental protection areas in the Netherlands. Impact on maritime operations can be severe - in particular for wind farm construction - required 80% NOx reduction on top of Tier III restrictions. Learn more about PAS here.
Port of Hamburg has the ambition to become carbon neutral by 2040. It is one of the most ambitious ports in terms of sustainability in the world and has an installed capacity of 72 MVA of shore power by 2024. Learn more about the targets and ambitions of Port of Hamburg here.
The Ship Energy Efficiency Management Plan II (SEEMP II) is the updated version of the first SEEMP. It includes to obligation of vessels of 5000 GT and above to input CO2 data into the IMO Data Collection System (DCS). Learn more about SEEMP II and how it impacts your vessel’s operations here.
Shell has the ambition to become carbon neutral by 2050. Learn all about the targets and ambitions of Shell with regards to maritime sustainability.
Ørsted has the ambition to become carbon neutral by 2025 (Scope 1) and 2040 (Scope 3). Learn more about the targets and ambitions of Ørsted with regards to maritime sustainability here.
Maersk has the ambition to become carbon neutral by 2040. Learn more about the targets and ambitions of Maersk with regards to maritime sustainability here.
Eni has the ambition to become carbon neutral by 2035. Learn more about the targets and ambitions of Eni with regards to maritime sustainability here.
The Ship Energy Efficiency Management Plan III (SEEMP) is the updated IMO mandated energy efficiency reduction plan. It mandates a carbon reduction, measured by the Carbon Intensity Indicator (CII). 11% Reduction of CO2 is required by 2026, 40% by 2030 and 70% by 2050. Learn more about SEEMP III and how it impacts your vessel’s operations here.
It is proposed that carbon pollution from transportation will be taxed by the Environmental Protection Agency (EPA). Impact for shipping is unknown as no details are provided.
The US Clean Shipping Act is currently one of the most stringent maritime laws in the world. It requires all vessels above 400 GT to be fully zero emission by 2040 in US waters. In addition, shore power is mandatory as per 2030 for all vessels. Learn more about the Clean Shipping Act here.
The IMO Data Collection System (DCS) is the reporting system for IMO that collects data as part of SEEMP II. Ships above 5000 GT are required to yearly input aggregated data to flag state. Impact on operations is limited. Learn more about IMO DCS here.
Learn all about the United Kingdom Monitoring, Reporting and Verification regulatory framework used to determine carbon tax for shipping industry.
Learn all about the United Kingdom Monitoring, Reporting and Verification regulatory framework used to determine carbon tax for shipping industry.
The Ocean-Going Vessels at Berth (OGVB) regulation in California mandates shore power usage for specific vessel types starting per 2023. Learn all about OGVB and applicable ship types here.
The Ship Energy Efficiency Management Procedure (SEEMP) is a - not too stringent - IMO mandated plan to increase energy efficiency and reduce emissions. Learn more about SEEMP and how it impacts your vessel’s operations here.
Learn all about the targets and ambitions of Equinor with regards to maritime sustainability.
Learn all about Port of Rotterdam’s sustainable ambitions, in particular with regards to shore power.
The Carbon Intensity Indicator (CII) is a rating to determine carbon intensity of your vessel by IMO. It is part of SEEMP III and mandates a reduction of 11% by 2026 and 70% by 2050. Learn more about CII and how it affects your vessel’s operations here.
FuelEU Maritime is one of the most stringent upcoming laws on maritime sustainability, enforcing strict fuel reduction targets in combination with penalties on fuel combustion and shore power obligations for container and passenger ships.
EU ETS will serve as a carbon tax for the maritime industry. At current price level, it will increase fuel cost by at least €200 - €300 per mT fuel.
Stories
In IMO’s fourth greenhouse gas (GHG) study, a consortium headed by research establishment CE Delft has found that GHG emissions from global shipping are growing and are expected to continue to increase.