IMO’s draft Net-Zero Framework
Kartavya Desk Staff
Syllabus: International Relation
Source: IMO
Context: The International Maritime Organization (IMO) has approved the draft Net-Zero Framework to combat climate change by reducing GHG emissions from shipping, aiming for net-zero emissions by around 2050.
About IMO’s draft Net-Zero Framework:
What is the Framework?
• A legally binding global plan to regulate greenhouse gas emissions from the maritime shipping sector.
• First initiative to combine global emissions limits with carbon pricing for an entire industrial sector.
Key Features:
• Legal Basis: New Chapter 5 of MARPOL Annex VI (Prevention of Air Pollution from Ships).
• Global Fuel Standard (GFI): Mandates reduction in GHG fuel intensity per energy unit used by ships (well-to-wake model).
• Carbon Pricing: Ships exceeding GFI limits must purchase remedial units; low-GHG ships earn surplus credits.
• IMO Net-Zero Fund: Redistributes carbon revenues to: Reward zero-emission ships. Fund R&D, capacity building, and climate resilience in SIDS & LDCs.
• Reward zero-emission ships.
• Fund R&D, capacity building, and climate resilience in SIDS & LDCs.
• Coverage: Targets ships over 5,000 GT—responsible for 85% of maritime CO₂ emissions.
• Compliance Mechanism: Transfer surplus units between ships. Buy credits via IMO fund. Bank own surplus credits.
• Transfer surplus units between ships.
• Buy credits via IMO fund.
• Bank own surplus credits.
Significance of the Draft IMO Net-Zero Framework:
• First Global Sector-Wide Regulation: Unifies emissions cap and carbon pricing across international waters.
• Drives Low-Carbon Innovation: Incentivizes adoption of green fuels, onboard CCS, and hybrid technologies.
• Climate Alignment: Supports Paris Agreement goals and 2023 IMO Strategy targets.
• Equity Focused: Assists vulnerable nations via climate financing and technology transfers.
• Energy Transition Catalyst: Spurs investment into ammonia, methanol, and hydrogen-based fuels in maritime logistics.
Limitations of the Framework:
• Delayed Enforcement: Actual implementation begins in 2027, despite urgency.
• Data Transparency Challenges: Measuring “well-to-wake” emissions is complex and may face reporting gaps.
• Equity Concerns: Higher compliance costs may impact developing maritime nations disproportionately.
• No Binding Rules on Ship Design: Current measures focus on fuel; design innovations like wind propulsion remain voluntary.
• Market Readiness: Limited global availability of zero-emission fuels to meet upcoming GFI standards.
Way Forward:
• Accelerate Fuel Innovation: Boost global investments in green methanol, ammonia, and electro fuels.
• Inclusive Dialogue: Ensure Small Island States (SIDS) and LDCs get fair access to green tech and funding.
• Real-Time Tracking Systems: Deploy blockchain-based emissions tracking to improve compliance transparency.
• Complementary Ship Design Rules: Introduce parallel Energy Efficiency Design Index (EEDI) updates for new builds.
• Capacity Building: Support training, retrofitting programs, and local shipyard upgrades for clean technology assimilation.
Conclusion:
The IMO Net-Zero Framework marks a milestone in climate governance by regulating maritime emissions globally. While ambitious in structure and purpose, timely implementation, fuel innovation, and equitable mechanisms will be vital for success. This can set a global precedent for other high-emission sectors.
• ‘Sea is an important Component of the Cosmos”. Discuss in the light of the above statement the role of the IMO (International Maritime Organisation) in protecting the environment and enhancing maritime safety and security. (UPSC-2023)