A new U.S. push to cut ship emissions will kick into high gear a multibillion-dollar quest for nonfossil fuels to power oceangoing vessels, but likely will face a backlash from Asian and South American nations that fear rising export costs. The U.S. has stayed on the sidelines of a multiyear effort by the International Maritime Organization, the United Nations’ global maritime regulator, to slash CO2 emissions from ships by half in 2050 compared with 2008 levels. But in April, U.S. Special Presidential Envoy for Climate John Kerry signaled a change of stance, saying the IMO should push for the tougher target of zero emissions in that time frame.
“The United States is committing to work with countries in the IMO to adopt the goal of achieving zero emissions from international shipping by 2050 and to adopt ambitious measures that will place the entire sector on a pathway to achieve this goal,” Mr. Kerry said during a virtual climate meeting. The move is part of the Biden administration’s policy to address climate change after bringing the U.S. back into the Paris Agreement to limit greenhouse-gas emissions. Under the Trump administration, the State Department told the U.N. in 2019 that it would pull out of the accord.
The American U-turn is set to bring to the fore divisions among IMO members when the body meets in 2023 to consider revising the 50% emissions-reduction target, which was agreed to in 2018, according to shipping executives and government officials who are involved in the organization.
South American nations fear that the cost of exporting meat products, fresh produce and commodities would at least double if ships have to run on nonfossil fuels, which currently cost roughly 10 times more than conventional bunker oil.
“The IMO target for a 50% cut is already a tall order,” said Lars Robert Pedersen, deputy secretary general of shipping trade body Bimco.
The U.S. isn’t one of the countries that dominate the shipping business, ranking below Greece, China, Japan and South Korea. But the switch to noncarbon-based fuels would cost an estimated $3 trillion globally, and shipowners looking to raise funds to renew their fleets—some of which are listed in New York—must pay heed to U.S. regulations.
China likely would join developing countries in seeking exceptions to any new requirements or pushing for financial support and technology transfers to ease the transition to new ship fuels, according to people familiar with the IMO’s deliberations.
“While it’s encouraging to see more countries push for increasing the level of ambition to close to zero, there is a need to ensure no one is left behind, meaning more support will be required to other countries to achieve that more ambitious target,” said Roel Hoenders, head of air pollution and energy efficiency at the IMO. “Defining and agreeing on that support will be a complex issue.”