Although the International Maritime Organization (IMO) postponed by one year the adoption of regulations to reduce greenhouse gases in shipping, Lee Jae-hyeok of LS Securities said on Oct. 20 that the shift to eco-friendly vessels will continue.
The IMO held the 2nd Extraordinary Session of the Marine Environment Protection Committee (MEPC ES2) from Oct. 14 to 17 and discussed whether to adopt "midterm measures to reduce greenhouse gases from ships." The midterm measures include a regulation that ships of 5,000 tons (t) or more engaged in international voyages must comply with the greenhouse gas intensity standard for marine fuels set by the IMO, and, if violated, pay a levy. The plan was originally to be handled at this meeting and take effect in March 2027.
However, U.S. President Donald Trump criticized the carbon tax as a "green scam tax," shifting the mood. At Saudi Arabia's suggestion, a one-year delay was put to a vote, and with 57 countries in favor, 49 against, and 21 abstentions, it was ultimately decided to revisit the issue in a year.
With the implementation of the IMO's midterm measures pushed back, there are concerns that orders for eco-friendly vessels could slow. Still, researcher Lee Jae-hyeok said, "The overall direction toward a transition to eco-friendly shipping will not change." He added, "Even under the current Carbon Intensity Indicator (CII) alone, global standards for ship carbon emissions are being tightened every year, and pressure to phase out old, non-eco-friendly ships continues."