How is shipping industry tackling emissions?, Pg8

• At its 83rd session, the Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) adopted a Market-Based Measure (MBM) framework to reduce GHG emissions from ships.

  • The decision aligns with Paris Agreement goals and includes global GHG reduction targets of:

    • 20% cut by 2030 (net-zero pathways)

    • 70% by 2040, aiming for net-zero emissions by 2050

    • Shipping emits ~2.8% of global GHGs; emission reduction has lagged due to complex international regulation, especially involving fossil fuel exporters.

  • The MBM decision includes a global carbon pricing mechanism, compliance incentives, and support for developing nations.

  • India supported zero-carbon fuels and wants to develop itself as a hydrogen bunkering hub.

Background and Proposals

• The shipping industry had no binding climate obligation under Kyoto Protocol or Paris Agreement; MEPC 83 marks the first concrete step.

  • Proposals included:

    • Carbon levies (Marshall Islands, Solomon Islands)

    • A fuel standard and reward (EU)

    • Reward system for early movers (Singapore)

Global Response

• Oil-exporting nations (e.g., Saudi Arabia) opposed fossil fuel disincentives.

  • Small island states and EU pushed for early decarbonisation and loss & damage redress.

  • U.S. rejoined the process after its return to climate cooperation under Biden.

India’s Position

• India supported:

  • Use of zero or near-zero emission fuels

  • Green hydrogen investments (under National Green Hydrogen Mission)

  • Equitable energy transition, requesting safeguards for developing countries’ trade.

Impact on Shipping Industry

• MBM to generate $40-$60 billion annually from ~236 ships (0.1% of global fleet).

  • High compliance cost expected to raise logistics costs in India by 8–9% by 2030.

  • India likely to benefit if green shipping fuels are developed locally.

Scientific/Technical Concepts Involved

• GHG Fuel Standard: Regulates emission intensity of fuels used.

  • Carbon Pricing Mechanism: Market-based tool that sets a cost for emitting carbon to drive cleaner alternatives.

  • Bunkering: Refueling infrastructure for ships; India aims to be a green hydrogen bunkering hub.

Significance

• Establishes global climate governance over maritime emissions.

  • Brings non-Annex countries like India into a position of global leadership through technology and fuel innovation.

  • Highlights India's climate diplomacy and green industrial growth prospects.

Mains Mock Question:

The international shipping industry has remained outside the purview of major climate agreements until recently. Discuss the implications of the MEPC 83 decision on India’s maritime economy and its green energy transition.