Advanced BioFuels USA

(Maritime Cyprus) … Reduction of GHG emissions — Revision of the IMO GHG Strategy

There was an extensive exchange of views on the scheduled revision of the IMO GHG Strategy. MEPC 79 revised the Guidance on process and methodological elements for the conduct of comprehensive impact assessments (MEPC.1/Circ.885).

There was limited convergence between member states on the vision and levels of GHG reduction ambitions in the strategy. The main divergence in views is on those calling for full decarbonization by 2050, and those calling for further assessments on feasibility to achieve such an ambition and the potential impacts on states before such a decision can be made. There also remains a divergence of views on the necessity of intermediate GHG reduction targets being set for 2030 and 2040.

The MEPC will adhere to the established workplan on this matter and adopt the revised strategy at MEPC 80 in July 2023. Further discussions will take place at Working Group meetings to be held from 20 to 24 March, and during the week prior to MEPC 80 in July 2023.

Mid and long-term measures to reduce GHG emissions

There was an extensive discussion on potential mid and long-term measures at a Working Group meeting held the week prior to MEPC 79. At this meeting, proposals for various measures were discussed and there was an increased support for a basket of measures combining technical and economical elements. On market-based measures there was a convergence towards a levy scheme, imposing a set price on well-to-wake or tank-to-wake GHG emissions, possibly in combination with a rebate system where the revenues are partly provided back to vessels to cover the price gap between fossil and low or zero-carbon fuels. Additionally, there was significant support for a technical measure in the form of a well-to-wake GHG intensity fuel standard.

Further discussions will take place at Working Group meetings to be held from 20 to 24 March, and during the week prior to MEPC 80 in July 2023. The decision on which measures to develop into regulations will be made at MEPC 80.

Correction factors for the Carbon Intensity Indicator (CII)

Proposals for additional CII correction factors were deferred to MEPC 80. Considering the diverging views expressed, it is likely that decisions to add further correction factors will only be taken at the review point in 2025.

Revision of the Data Collection System (DCS)

In addition to the amendments to the DCS adopted at MEPC 79, there was a discussion on adding further elements, including mandatory cargo data reporting. The discussions will continue at future meetings of the MEPC.

On-board CO2 capture

A brief discussion was held on provisions for considering on-board CO2 capture and storage in GHG regulations under MARPOL Annex VI. Due to time constraints, the issue was deferred to MEPC 80.

Lifecycle GHG/carbon intensity for marine fuels

A brief discussion was held on developing guidelines on life cycle GHG/carbon intensity. The correspondence group will continue its work on the guidelines, and a first version is expected to be finalized at MEPC 80 in July 2023. READ MORE