Global shipping industry faces various obstacles to climate goals

As a sector under pressure from environmentalists and investors to take stronger action against climate change, the shipping industry is facing major challenges in avoiding “lagging behind” in the current race to cut emissions.

Illustrative photo.

However, the “Net Zero Emissions Framework” introduced to reduce greenhouse gas emissions from the shipping industry has encountered a major obstacle following opposition from the US.

Carrying around 80% of global trade by volume and accounting for nearly 3% of the world’s CO₂ emissions, the shipping industry is a “culprit” in climate change, leaving multiple consequences for ecosystems, such as water, noise pollution, and ocean waste.

In addition to greenhouse gas emissions, frequent oil spills in heavily trafficked shipping lanes such as the North Sea and the Mediterranean threaten marine life and the ocean food chain.

Plastic waste and wastewater from ships also raise concerns. Although waste from fishing and shipping has decreased by 50% over the past decade, monitoring and control remain challenging.

The shipping industry is under pressure to accelerate the transition to clean fuels, along with sustainable shipping and port solutions, to minimise negative impacts on the marine environment.

In reality, however, the industry’s green transition remains slow, with only just over 3% of the world’s total ship tonnage using alternative fuels or batteries.

One of the major barriers to the transition is the limited supply of biofuels, because of competition from other industries such as aviation and renewable energy production.

Carbon emission reduction and carbon storage technologies are becoming top priorities for industries, including shipping.

As environmental regulations become stricter, industries and transport are increasingly applying emission reduction technologies, creating strong growth momentum for the global carbon market in the future.

Member countries of the International Maritime Organisation (IMO) agreed on a “Net Zero Commitment” in July 2023 to bring net emissions from shipping to zero by around 2050, with intermediate emission reduction targets for 2030 and 2040.

Proposals include using revenues to promote the adoption of advanced net-zero fuels and technologies, and to support decarbonisation efforts in the shipping industry in developing countries.

The IMO’s “Net Zero Emissions Framework” has been included in the new Chapter 5 of Annex VI to the International Convention on the Prevention of Pollution from Ships (MARPOL).

Although one of the IMO’s 176 member states, the US withdrew from negotiations on the “Net Zero Emissions Framework” in April this year, calling on IMO member states to reconsider their support for the proposal.

The administration of President Donald Trump has firmly rejected the IMO’s new proposal, refusing to accept any actions that would increase costs for citizens, energy suppliers, shipping companies, and their customers. The US announced it would urge other IMO members to oppose the proposal and would take retaliatory action against those supporting it.

According to plan, the IMO will vote on the “Net Zero Emissions Framework” in October. To pass, the proposal needs the support of two-thirds of the 108 participating countries. However, in the face of US opposition, the proposal to bring global shipping net emissions to zero faces major hurdles. The path to a “green revolution” aimed at opening a new era of carbon-neutral shipping, contributing to ambitious global climate goals, remains fraught with challenges.

NDO