Export, import cost may increase from Jan 2027 as global shipping faces costly decarbonisation measures

economictimes.indiatimes.com:

The 175-member International Maritime Organization (IMO) notified its strategy on July 7 to decarbonise the global shipping sector and achieve net-zero emissions by 2050, the Global Trade Research Institute (GTRI) said. It added that IMO has also set interim targets for reducing emissions by 20-30 per cent by 2030 and 70-80 per cent by 2040, compared to 2008. It added that IMO has also suggested the shipping industry should switch to cleaner fuel. «By 2030 cleaner fuel must account for a minimum 5 per cent of total fuel use. IMO will notify detailed measures next year. While IMO recommendations are not legally binding, countries are expected to achieve the targets set. This year, few countries pushed for a flat tax of USD 100 per tonne of carbon emission by ships, yet IMO ignored the recommendation and set broad targets due to opposition from China and many developing countries,» GTRI co-founder Ajay Srivastava said.

Shipping regulator falls short of 1.5C-aligned climate goals

India should watch out against the IMO recommending punitive levies, he said. «Compliance with the two directives will result in about 3-4 per cent increase in the price of export and import products, amounting to $ 600-800 billion annually at global level,» the report said. It added that over 80 per cent of the world's merchandise trade valued at more than USD 20 trillion takes place through 6,400 cargo ships. The shipping industry contributes about 3 per cent of greenhouse gas emissions annually using fossil fuels like bunker oil.

Nations aim to zero out shipping emissions by midcentury

Further, it said that the EU parliament has included shipping in the EU's Emissions Trading System (ETS) on April 18. As