Press release: The IMO’s revised GHG targets must align with a 1.5°C pathway and support a fair and equitable transition.
Press Release
IMO needs to work harder to level the playing field and ensure climate vulnerable countries aren’t left behind in shipping’s energy transition.
(London, 13 March, 2023) Next week’s round of technical talks at the UN’s maritime regulator, The International Maritime Organization (IMO), is one of the last and most crucial opportunities for countries to contribute towards the IMO’s revised GHG Strategy.
In less than six months, the IMO will adopt a revised GHG Strategy. The upcoming 14th intersessional working group on greenhouse gas emissions (ISWG-GHG 14), is a pivotal moment to not only ensure the shipping industry takes meaningful action on climate change, but to set out plans for a transition that is fair and equitable for all nations.
Pressure is mounting ahead of these IMO meetings, taking place from 20-24 March 2023. The UN Secretary-General, António Guterres, has urged the IMO to revise its emissions target in line with the Paris Agreement goal of 1.5°C. The IMO’s current emissions Strategy is to reduce GHG emissions by at least 50% by 2050, but Guterres has stated that this target is not enough, and puts the shipping sector on a pathway of above 3°C of global warming – far from the 1.5°C pathway it needs to achieve.
This year, the IMO has a unique window of opportunity to change the course of shipping emissions to align with the Paris Agreement by no later than 2050. To keep the industry on track it’s vital that emissions are reduced immediately, that interim targets are set for 2030 and 2040, and that any targets are set in a way that supports all nations, including those most vulnerable to climate change. These are often the smaller, most economically challenged countries who stand to lose the most from the effects of climate change if targets are not met.
Ana Laranjeira, Shipping Manager at Opportunity Green says: “If the IMO is serious about its commitment to a fair and equitable transition, now is the time to show it. We need an agreement on revised emissions targets at the IMO that are in alignment with a 1.5°C pathway to zero by no later than 2050, and to advance the discussions on the regulatory measures that will make these ambitious goals a reality. These measures must include an ambitious market-based mechanism, with part of its revenues going towards supporting the sustainable development of climate vulnerable countries.”
At COP26, the Climate Vulnerable Forum, which represents 55 nations, called for a global levy for shipping, with the “majority of its revenues being employed as additional financial support for urgent climate actions, particularly by the vulnerable developing countries”. From all the proposals on the table, the GHG levy put forward by the Marshal Islands and Solomon Islands is the strongest, both in terms of its ambition, and support for the most impacted developing nations. It proposes a starting price of $100/tonne of C0 2 equivalent emissions, with this price increasing every five years, with the majority of revenues generated going towards climate action in the most vulnerable nations.
Ana Laranjeira concludes, “According to the World Bank, between $1 trillion to $3.7 trillion could be raised from putting a price on shipping emissions by 2050. While there is no silver bullet to solve global climate inequity, a measure of this scale would not only generate revenue to accelerate global shipping decarbonisation but do it in a way that supports the sustainable development of the most climate vulnerable nations, advancing a fair and equitable transition for all”. Particularly, we need the timely adoption of a market-based measure that:
Efficiently addresses the price differential between conventional fuels and sustainable alternative fuels, by adequately pricing lifecycle GHG emissions.
Has the potential to generate revenues that can spearhead an equitable transition for all.
Will provide predictability to industry, decision-makers, and incentivise early movers.
Notes to editors
International shipping currently produces approximately 3% of all global greenhouse gases. Increasing demand for shipping services means that maritime emissions are accelerating faster than many other sectors and if no meaningful action is taken, shipping could account for 10-13% of global emissions by 2050.
Opportunity Green is an NGO working to unlock the opportunities from tackling climate change using law, economics, and policy. It does this by building ambitious coalitions, supporting climate vulnerable countries, and finding innovative legal pathways for bold climate action, with particular emphasis on the aviation and shipping industries.
Since October 2022, Opportunity Green has been working bilaterally with a number of ambitious climate vulnerable IMO Member States, to increase their capacity to engage and participate at the climate IMO meetings, including ISWG-GHG 14. Our work with these countries includes inter alia, developing unbiased information briefings ahead of the IMO meetings, providing ad-hoc legal and policy advice, and facilitating networking opportunities.
Media contacts:
Hannah Jolliffe
Communications Manager, Opportunity Green
Ana Laranjeira
Shipping Manager, Opportunity Green