The Urgency of the IMO’s Climate Strategy

In 2023, the IMO adopted a new climate strategy aimed at achieving net-zero greenhouse gas emissions by around 2050. As a stepping stone, the body set targets to reduce emissions by 20%-30% by 2030 and 70%-80% by 2040, relative to 2008 levels. Central to this ambitious plan is the implementation of the Global Fuel Standard, which mandates a switch to cleaner, alternative fuels for ships.

Key Concerns over Unsustainable Biofuels

During the upcoming Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 18) meeting in London from February 17 to 21, industry stakeholders will deliberate on regulatory measures to decarbonize shipping. Transport & Environment (T&E), a prominent environmental organization, highlighted the risk that without stringent safeguards, the new regulations could spur widespread use of palm and soy oil for shipping, which would exacerbate deforestation and climate issues.

According to T&E, when deforestation and land use are considered, palm and soy biofuels are, at best, two to three times more harmful to the climate than traditional maritime fuels. Additionally, these crops take up significant agricultural land, which puts pressure on biodiversity and food security.

What the Industry is Calling For

Constance Dijkstra, T&E’s shipping manager, emphasized, “Currently, the IMO’s approach poses more risks than benefits. The use of palm and soy biofuels not only threatens our forests but also competes with our food supplies. The industry should prioritize green fuels derived from hydrogen.” This perspective underscores a shift toward renewable and sustainable sources of energy.

International Moves and Policy Recommendations

Several countries, including France, Norway, and the Netherlands, have restricted or phased out palm and soy biofuels in their domestic markets. The European Union also excluded the use of food crops in its FuelEU regulation, a pioneering policy aimed at curbing the adverse effects of biofuels on land use.

The T&E, alongside 69 other environmental NGOs, has penned an open letter to the IMO opposing the inclusion of crop-based biofuels in the proposed Global Fuel Standard. They have also expressed reservations about the Brazilian government’s role in promoting biofuels as part of their agenda for COP30 in November.

The Promise and Peril of Waste-Based Biofuels

While the stand against crop-based biofuels is strong, it’s important to acknowledge that a significant portion of biofuel bunkers in shipping currently come from sustainable waste-based feedstocks, such as used cooking oil. These waste sources are often subject to rigorous sustainability standards, ensuring ethical sourcing, zero deforestation, and traceability throughout the supply chain.

Bill Stamatopoulos from VeriFuel elaborates, “Suppliers must adhere to organizations like the International Sustainability Carbon Certification (ISCC) to guarantee they meet all the necessary conditions for sustainability.”

Voluntary Commitment by Shipping Companies

Despite the concerns, numerous shipping enterprises are voluntarily integrating sustainable biofuels into their operational profiles. By setting specific targets for biofuel consumption, these companies demonstrate a commitment to environmental responsibility.

Conclusion: Ensuring a Sustainable Future

The shipping industry’s transition towards a carbon-neutral future hinges on the careful selection of alternative fuels. Excluding unsustainable biofuels and prioritizing greener options, such as hydrogen, is crucial to align with global climate targets. As the debate embarks in London this February, stakeholders must take decisive action to ensure the development of policies that safeguard both our environment and our future.

Join the conversation on Twitter using the hashtag #SustainableShipping and share your thoughts on how the industry can achieve greener practices while protecting our planet.

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