IMO GHG pricing not yet Paris deal-aligned: EU

Spanish Market: Biofuels, Emissions, Hydrogen, Natural gas, Oil products
14/04/25

The International Maritime Organisation's (IMO) global greenhouse gas (GHG) pricing mechanism "does not yet ensure the sector's full contribution to achieving the Paris Agreement goals", the European Commission has said.

"Does it have everything for everybody? For sure, it doesn't," said Anna-Kaisa Itkonen, the commission's climate and energy spokesperson said. "This is often the case as an outcome from international negotiations, that not everybody gets the most optimal outcome." The IMO agreement reached last week will need to be confirmed by the organisation in October, the EU noted, even if it is a "strong foundation" and "meaningful step" towards net zero GHG emissions in global shipping by 2050.

The commission will have 18 months following the IMO mechanism's formal approval to review the directive governing the bloc's emissions trading system (ETS), which currently includes maritime emissions for intra-EU voyages and those entering or leaving the bloc.

By EU law, the commission will also have to report on possible "articulation or alignment" of the bloc's FuelEU Maritime regulation with the IMO, including the need to "avoid duplicating regulation of GHG emissions from maritime transport" at EU and international levels. That report should be presented, "without delay", following formal adoption of an IMO global GHG fuel standard or global GHG intensity limit.

Finland's head representative at the IMO delegation talks, Anita Irmeli, told Argus that the EU's consideration of whether the approved Marpol amendments are ambitious enough won't be until "well after October".

Commenting on the IMO agreement, the European Biodiesel Board (EBB) pointed to the "neutral" approach to feedstocks, including first generation biofuels. "The EBB welcomes this agreement, where all feedstocks and pathways have a role to play," EBB secretary general Xavier Noyon said.

Faig Abbasov, shipping director at non-governmental organisation Transport and Environment, called for better incentives for green hydrogen. "The IMO deal creates a momentum for alternative marine fuels. But unfortunately it is the forest-destroying first generation biofuels that will get the biggest push for the next decade," he said.

By Dafydd ab Iago

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23/04/25

US states including New York sue Trump over tariffs

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Brazilian wildfires burn 70pc less area in 1Q

23/04/25

Brazilian wildfires burn 70pc less area in 1Q

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Tariffs could cut FY profit $100mn-$200mn: Baker Hughes

23/04/25

Tariffs could cut FY profit $100mn-$200mn: Baker Hughes

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US wants IMF, World Bank to drop climate focus

23/04/25

US wants IMF, World Bank to drop climate focus

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EU will submit climate plan ‘in time’ for September

23/04/25

EU will submit climate plan ‘in time’ for September

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