For years, the international shipping industry has faced criticism for its slow progress in reducing the significant carbon emissions produced by vessels transporting everyday goods like food, cars, and clothing.
Now, the new head of the International Maritime Organization (IMO), Arsenio Dominguez, is subtly urging companies to take action. “There is more that can be done,” he stated during an interview at Germany’s Hamburg Sustainability Conference. “The low-hanging fruit is there.”
Dominguez, who became secretary general at the start of the year, highlighted strategies like using satellites for optimal routing based on weather, cleaning ship hulls to reduce water friction, and “slow steaming”—operating vessels below their maximum speed to cut fuel use and emissions.
While acknowledging that many companies are making efforts to reduce greenhouse gas emissions, he stressed that achieving the IMO’s target of a 30% emissions reduction by 2030 requires immediate implementation of all available measures.
A significant overhaul of shipping fuel is essential for decarbonization, as the industry predominantly uses heavy fuel oil, which emits carbon dioxide and other pollutants. Cleaner alternatives like hydrogen, ammonia, and biofuels are in development but face challenges of cost, scalability, and sustainable production.
The shipping sector currently accounts for about 3% of global greenhouse gas emissions, and these figures are projected to rise sharply without significant changes. Unlike other sectors like power and ground transportation, which have made strides in decarbonization through electrification, shipping has lagged behind.
Last year, the IMO set a goal to achieve net-zero emissions by around 2050, highlighting the considerable work ahead. The organization is also being urged to implement a carbon tax, similar to initiatives in the European Union, where large ships are already taxed on their carbon dioxide emissions.
Dominguez clarified that he doesn’t prefer to call it a tax, given the sensitivity surrounding the issue. He mentioned that several scenarios are being considered, including carbon efficiency ratings for ships and setting fuel standards.
The IMO committee will meet in April to discuss these measures, with formal adoption expected in the fall, and any decisions would take effect in 2027, allowing time for adjustments.
In the meantime, Dominguez emphasized that shipping companies should maximize emission reductions, including the use of liquid natural gas (LNG) as a fuel. While LNG can improve engine efficiency and lower emissions, concerns remain about methane leaks, which can undermine any benefits gained.
Environmentalists argue that relying on LNG allows fossil fuel producers to maintain the status quo, delaying a necessary transition to renewable energy sources.