Context & Significance
- Shipping contributes ~2.8% of global GHG emissions (~1 billion tonnes/year).
- If considered a country, shipping would be the 6th largest emitter globally.
- Emissions could rise by 50–250% by 2050 if unregulated.
- The IMO (UN body for shipping) is spearheading efforts to decarbonise the sector.
Relevance : GS 3(Environment and Ecology)
Key Outcome of MEPC-83
- Voted 63-16 in favour of Singapore’s hybrid model, inspired by India’s ‘bridging mechanism’.
- First global adoption of a mandatory emissions levy framework in any industry.
- However, full implementation awaits amendment of Annex VI of MARPOL and further consensus.
Major Proposals Tabled
- International Chamber of Shipping: Fixed levy per tonne of CO₂.
- China: Market-based system for trading compliance units.
- EU: Fixed GHG levy managed by IMO-administered fund.
- India: Penalise underperformers; reward Zero/Near-Zero fuel users.
- Singapore: Enhanced Indian model with GHG Fuel Standard (GFS) and surplus/remedial credit units.
Diverging Global Responses
- Oil-exporting nations (e.g. Saudi Arabia): Opposed to green fuel shift.
- Small Island States/LDCs: Favoured steep levies for green development funding.
- China & Shipping Giants: Sought minimal levies; investment in clean fuels.
- Scandinavian Nations: Wanted credits for early decarbonisation.
- Traditional maritime powers (e.g. Greece): Sceptical of feasibility.
US Position
- Did not participate under the Trump administration.
- Opposed EU’s uniform carbon levy; warned of “reciprocal measures”.
India’s Role and Gains
- Credited as co-architect of adopted Net Zero Framework.
- Operates ~236 large vessels; MBM applies only to 135 international ships.
- Limited impact on costs: +$108 million by 2030 (manageable).
- Green Hydrogen Opportunity:
- India’s National Hydrogen Mission aligns with IMO’s emissions threshold.
- Ports preparing for green hydrogen bunkering.
- Potential to emerge as a global green fuel hub.
Why Green Shipping Matters
- Aligns with:
- SDG 13 (Climate Action)
- Paris Agreement targets
- Helps avoid climate disasters while ensuring trade sustainability.
- Ensures shipping doesn’t lag behind other sectors in emissions reduction.
Equity & CBDR Principle
- Developed nations allegedly shifting responsibility to developing countries.
- Violation of the Common But Differentiated Responsibilities (CBDR-RC) principle.
- Developing nations like India demand fairness in the transition.
Future Steps & Challenges
- Requires two-thirds ratification of MARPOL amendment.
- May face resistance if 1/3 of member states (with ≥50% of global tonnage) object.
- Key test: balancing climate goals with economic competitiveness and equity.
