In 2023, the shipping industry saw significant regulatory changes, including the adoption of a revised greenhouse gas strategy by MEPC 80, the entry into force of the IMO’s Carbon Intensity Indicator (CII), and the EU’s extension of the Emissions Trading Scheme (ETS) to shipping. This marked a shift from conceptual discussions about decarbonizing shipping to actual implementation. The industry is now preparing to navigate the EU ETS and receive their first CII ratings, highlighting the importance of energy and operational efficiency.
As the industry moves into 2024, the focus will be on how commercial and contractual relationships develop in response to the regulatory changes. This includes rethinking contractual arrangements to share costs and risks, as well as adapting to new environmental auditing requirements. The coming months will also define an important trend of extending environmental auditing beyond carbon emissions to include other aspects of ESG performance, as required by the EU Corporate Sustainability Reporting Directive (CSRD).
Amidst these regulatory changes, the shipping industry is also seeing initiatives aimed at addressing decarbonization challenges, such as the Blue Visby initiative and partnerships to maximize emissions reductions through wind propulsion and travel optimization. These industry-led initiatives show that collaborative efforts towards decarbonization are not only possible, but can also make sense for operations, companies, and the bottom line. Overall, the industry is shifting from theoretical debates to more mature conversations about the actual availability and sustainability of new energy sources and their practical implications.
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