International Climate Regulation

To achieve a global agreement on climate neutrality by 2050, ambitious and binding international regulation is required within the International Maritime Organization (IMO) that encourages first-movers while ensuring a level playing field.

At the same time, the EU can help guide the way for global regulation based on the ambitious regulations that were finalized in 2023.

In July 2023, the IMO is set to adopt its revised greenhouse gas strategy. From the Danish perspective, both industry and the government are working to adopt a target of climate neutrality by 2050 and to agree on the types of measures needed to reach that goal. One key focus is an economic instrument that bridges the price difference between conventional and sustainable fuels. Additionally, there is a need to agree on the criteria for classifying a fuel as green, ensuring clarity and maximizing climate contributions.

The IMO can draw inspiration from the EU, where through the Fit for 55 package, maritime shipping has been included in the EU Emissions Trading System and requirements have been set for the fuels used (FuelEU Maritime).

Specifically, ships over 5,000 GT sailing to, from, and between EU ports must offset their CO2 emissions with CO2 allowances. For ships sailing to and coming from third countries, the offset must cover 50 percent of emissions.

Furthermore, within the EU, the content of greenhouse gases in fuels must be reduced by two percent in 2025, increasing to 80 percent by 2050. Initially, these requirements can be met through the use of biofuels, but in the long term, there will be a significant need for e-fuels such as e-methanol and e-ammonia to achieve the target.