In its first publication, the Athens-based Maritime Emissions Reduction Centre (MERC), a non-profit organisation created by Lloyd Register’s Maritime Decarbonisation Hub in collaboration with a consortium of Greek shipowners, says that efficiency measures must be applied to the existing fleet to meet IMO Mid-Term GHG reduction measures.
By enhancing efficiency, the maritime industry can reduce the amount of alternative low-GHG fuels required, thereby lowering the overall cost of the energy transition, outlines the report. IMO Mid-Term GHG Reduction Measures as a Driver for Efficiency delves into the challenges and opportunities presented by the IMO’s mid-term measures. These measures, expected to be approved in April 2025 and enter into force in 2027, include an economic element such as a GHG pricing mechanism and a goal-based fuel standard regulating the phased reduction of marine fuel’s GHG intensity.
However, most new low-carbon fuels are not suitable for existing vessels and the maritime industry will compete with other sectors for suitable drop-in fuels. Therefore, improving efficiency in the existing fleet is critical to reducing GHG emissions while continuing to support global trade.
The introduction of economic elements, such as GHG pricing, will incentivise investments in technologies that reduce both energy use and emissions, driving improvements in shipping efficiency.
Stelios Korkodilos, MERC Director, said: “While alternative fuels will play a vital role in shipping’s decarbonisation journey, efficiency improvements will be critical for the existing fleet. Most new low-carbon fuels aren’t suitable for existing vessels, and the maritime sector will compete with aviation and road transport for limited supplies of drop-in alternatives. MERC will work with all industry stakeholders to overcome the technical, financial, and commercial barriers that hinder the uptake of solutions for the existing fleet and support shipping’s transition to a low-GHG future.”
MERC was founded to fill a gap in the maritime industry’s approach to decarbonisation. While there are numerous initiatives focused on the future of maritime energy, particularly in the development of alternative fuels, a need was identified for a dedicated effort to address the immediate challenges faced by the existing fleet, using conventional fuels, and support it to reduce GHG emissions. MERC intends to use its applied research and innovation to remove uncertainties and barriers, enabling the uptake of technologies and solutions today. The five Greek shipowners involved in MERC are Capital Group, Navios Maritime Partners, Neda Maritime Agency, Star Bulk and Thenamaris.
The IMO Mid-Term GHG Reduction Measures as a Driver for Efficiency report can be downloaded here.
