Greek shipowners urge realistic decarbonisation solutions ahead of IMO talks

The Marine Environment Protection Committee (MEPC) is scheduled to meet from 30 September to 4 October. Among the key issues on the agenda is the development of candidate mid-term measures aimed at reducing greenhouse gas (GHG) emissions from vessels.

Following the last MEPC meeting in March, shipping experts observed growing momentum toward a global greenhouse gas pricing mechanism. However, this does not necessarily mean an agreement is imminent. Riviera understands no final decisions are expected at this meeting, which has been described by sources involved in the process as a “work in progress.”

UGS proposals

Greek shipowners are pushing for "realistic and workable solutions," aligned with the proposals they have already put forward. In a social media statement, UGS emphasised the goal is to ensure the industry’s energy transition proceeds smoothly, without compromising its operational sustainability or global economic prosperity.

In its recently published annual report, UGS reiterated its support for incentivising the production of safe, alternative low- and zero-carbon fuels. It also emphasised the shipping sector relies heavily on out-of-sector stakeholders, particularly fuel producers and suppliers, for its decarbonisation efforts.

One of the key mechanisms supported by UGS is the ’Fund and Reward’ system. According to the Union, this mechanism would be funded through mandatory contributions from ships, based on their CO2 emissions, to an IMO-managed fund. This system, proposed by the International Chamber of Shipping (ICS), aims to disincentivize carbon emissions while rewarding vessels that adopt fuels and technologies to limit CO2 output.

UGS also advocates for the introduction of a Global Fuel Standard, similar to the IMO’s 2020 Sulphur Regulation. The Union believes such a standard would complement economic measures while minimising the administrative burden, especially for small and medium-sized enterprises in the shipping industry.

CII review

Greek shipowners are also backing the review of IMO’s Carbon Intensity Indicator (CII), echoing broader calls from the international shipping community for immediate amendments.

Organisations such as BIMCO, CLIA, Intercargo, Intermanager, ICS and Intertanko have all expressed concerns about the "unintended consequences" of the CII, which may conflict with the goal of reducing overall GHG emissions.

According to UGS, it is critical the CII accurately reflects the operational energy efficiency of ships, encourages the adoption of energy-efficient practices, and ensures fair competition across different segments of the industry.