In a time of geopolitical tensions, economic uncertainty and pressure on rules-based international cooperation, the new agreement stands out as a significant step forward.
It marks a historic milestone, as it is based on binding global regulation of international shipping. The regulation includes mechanisms that can be tightened over time, supporting the long-term goal of climate-neutral shipping.
The agreement is the result of challenging negotiations, and several countries – including the United States, Russia and Saudi Arabia – chose not to support it.
It includes a fuel standard and an economic element. The fuel standard sets reduction requirements for ships’ greenhouse gas emissions, which will be gradually tightened. This is intended to put shipping on a pathway towards climate neutrality in 2050.
The economic element will generate revenue to support the use of green fuels in shipping and help drive the transition in developing countries. The agreement aims to deliver on the climate strategy adopted by IMO member states in 2023.