{"id":43349,"date":"2025-05-14T20:55:39","date_gmt":"2025-05-14T15:25:39","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=43349"},"modified":"2025-05-14T20:56:11","modified_gmt":"2025-05-14T15:26:11","slug":"how-is-shipping-industry-tackling-emissions","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/14-05-2025\/how-is-shipping-industry-tackling-emissions","title":{"rendered":"How is the Shipping Industry Tackling Emissions?"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy, GS3\/ Environment<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>At the 83rd session of the Marine Environment Protection Committee (MEPC-83) of the International Maritime Organization (IMO), a landmark vote was held to adopt a Market-Based Measure (MBM) for decarbonising international shipping.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Green Shipping?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Green shipping refers to <strong>environmentally sustainable practices and technologies used in the maritime industry<\/strong> to reduce the environmental impact of shipping activities.<\/li>\n\n\n\n<li>It includes cutting greenhouse gas (GHG) emissions, improving energy efficiency, and minimizing marine pollution.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for Green Shipping<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Global Emissions: <\/strong>The shipping industry emits around <strong>1 billion tonnes<\/strong> of GHG annually, accounting for about <strong>2.8%<\/strong> of global emissions<\/li>\n\n\n\n<li><strong>Future Projections:<\/strong> Emissions may increase by<strong> 50\u2013250%<\/strong> by 2050 if unchecked.<\/li>\n\n\n\n<li><strong>Measures Already Enforced:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Energy Efficiency Design Index (EEDI):<\/strong> Sets efficiency standards for new ships.<\/li>\n\n\n\n<li><strong>Energy Efficiency Management Plan (SEEMP): <\/strong>Operational plans to cut emissions.<\/li>\n\n\n\n<li><strong>Mandatory fuel oil consumption reporting: <\/strong>Improves accountability and transparency.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>MEPC-83 Proposals for emissions levy mechanisms<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The International Chamber of Shipping<\/strong> advocated for a fixed levy per every tonne of CO\u2082 emitted.<\/li>\n\n\n\n<li><strong>China<\/strong> proposed a market-driven approach where ships could trade compliance units and invest in alternative fuels.<\/li>\n\n\n\n<li><strong>The European Union<\/strong> suggested a fixed Greenhouse Gas (GHG) levy, managed by an IMO-administered fund.<\/li>\n\n\n\n<li><strong>India<\/strong> proposed a <strong>\u2018bridging mechanism\u2019,<\/strong> which would target only under-compliant ships to bear the financial burden, while rewarding those using Zero or Near-Zero (ZNZ) fuels.<\/li>\n\n\n\n<li><strong>Singapore<\/strong> proposed a hybrid model based on India\u2019s proposal, including a<strong> GHG Fuel Standard (GFS)<\/strong> and a tiered system rewarding surplus emission units and requiring the purchase of remedial units for underperformance.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What was decided?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>IMO adopted Singapore\u2019s hybrid model<\/strong>, influenced significantly by India\u2019s proposal, as its Net Zero Framework.<\/li>\n\n\n\n<li>This marks the first time a global industry has adopted a mandatory emissions levy. However, the decision of the MEPC-83 is not final yet.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Roadblocks in implementations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The MEPC-83\u2019s decision, having approved the Net Zero Framework, needs to amend <strong>Annex VI of the MARPOL convention<\/strong>, which governs air pollution from ships.\n<ul class=\"wp-block-list\">\n<li>The amendment will undergo a six-month circulation period among all contracting parties to MARPOL.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>For final adoption, it requires a<strong> two-thirds majority of votes<\/strong> from members present and voting; this means that if all 101 parties participate, at least 67 must <strong>support the measure.\u00a0<\/strong><\/li>\n\n\n\n<li>There should be no formal objection by one-third of the parties accounting for 50% of global shipping tonnage.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the Concerns?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Oil-exporting countries<\/strong>, led by Saudi Arabia, <strong>opposed <\/strong>any significant transition to green fuels, prioritising the protection of their fossil fuel markets.\n<ul class=\"wp-block-list\">\n<li><strong>China and large shipping nations<\/strong> favoured low levies to maintain trade competitiveness.<\/li>\n\n\n\n<li><strong>Scandinavian countries<\/strong> demanded credit for early green efforts.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The original \u2018<strong>Common But Differentiated Responsibilities and Respective Capabilities<\/strong>\u2019 (CBDR-RC) principle is eroding.\n<ul class=\"wp-block-list\">\n<li>Developed countries are pushing for uniform rules, disregarding historical emissions and economic capacities of developing nations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Impact on India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Short-Term Impact:<\/strong> India\u2019s international fleet ( around 135 ships) would incur an additional <strong>$108 million\/year<\/strong> in fuel costs by 2030 \u2014 manageable given the scale.<\/li>\n\n\n\n<li><strong>Long-Term Opportunities:<\/strong>\n<ul class=\"wp-block-list\">\n<li>India is investing heavily via the National Hydrogen Mission.<\/li>\n\n\n\n<li>Indian ports are developing <strong>green hydrogen bunkering capabilities.<\/strong><\/li>\n\n\n\n<li>Indian hydrogen already meets the IMO\u2019s fuel reward thresholds, aiding its export potential.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concluding remarks<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The MEPC-83\u2019s approval of a market-based emissions framework represents a significant milestone in global efforts to decarbonise the shipping industry.<\/li>\n\n\n\n<li>If successful, this could serve as a model for other sectors in achieving a low-carbon global economy.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/Industry\/how-is-the-shipping-industry-tackling-emissions-explained\/article69568699.ece#:~:text=It%20has%20also%20included%20a,reporting%20of\" rel=\"nofollow noopener\" target=\"_blank\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">At the 83rd session of the Marine Environment Protection Committee (MEPC-83) of the International Maritime Organization (IMO), a landmark vote was held to adopt a Market-Based Measure (MBM) for decarbonising international shipping.<\/li>\n<p><\/p>\n<h3><strong>MEPC-83 Proposals for emissions levy mechanisms<\/strong><\/h3>\n<li class=\"ms-5\">The International Chamber of Shipping advocated for a fixed levy per every tonne of CO\u2082 emitted.<\/li>\n<li class=\"ms-5\">China proposed a market-driven approach where ships could trade compliance units and invest in alternative fuels.<\/li>\n<li class=\"ms-5\">The European Union suggested a fixed Greenhouse Gas (GHG) levy, managed by an IMO-administered fund.<\/li>\n<li class=\"ms-5\">India proposed a \u2018bridging mechanism\u2019, which would target only under-compliant ships to bear the financial burden, while rewarding those using Zero or Near-Zero (ZNZ) fuels.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/14-05-2025\/how-is-shipping-industry-tackling-emissions\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43349","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=43349"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43349\/revisions"}],"predecessor-version":[{"id":43358,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43349\/revisions\/43358"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=43349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=43349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=43349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}