The International Chamber of Shipping (ICS) has welcomed the comprehensive CO2 reduction rules from the UN's International Maritime Organisation (IMO).
But non-compliance will be punished if carriers fall below the UN's IMO standard as they "will face serious negative consequences," said ICS secretary general Guy Platten.
"The new agreement demonstrates the ability of IMO, as the industry's global regulator, to achieve binding targets to reduce ship emissions in line with the Paris Agreement," he said.
The agreement includes legally binding measures to ensure a 40 per cent reduction of CO2 in the global fleet by 2030, compared to 2008 with a view to achieving 100 per cent decarbonisation as soon as possible after 2050.
ICS is confident this new package of technical and operational regulations will be formally agreed by the IMO Marine Environment Protection Committee (MEPC) in November 2020, for entry into force in 2023.
The IMO contains an A-E rating system induce shipowners to reduce CO2 emissions by having D or E rating ships facing "serious negative consequences".
The IMO agreement follows publication, in August 2020, of the fourth greenhouse gas study that shows that carbon intensity of international shipping improved 30 per cent between 2008 and 2018.
Total GHG emissions from shipping in 2018 dropped seven per cent compared to 2008, despite a 40 per cent growth in maritime trade over the same period.
The shipping industry is a global industry requiring global rules, any alternative would produce a chaotic patchwork of conflicting regional and national CO2 reduction regimes, which would derail continuing negotiations to eliminate the sector's global emissions via a global regulatory framework.
Said Mr Platten: "ICS is fully committed to a zero-carbon future. While today's important agreement is about helping ensure that the existing fleet meets the 2030 target, ICS is also committed to 100 per cent decarbonisation as soon as possible after 2050."
Source: Shipping Gazette