Climate Change and Shipping: From Global Commitments to National Implementation

Shipping Policy Breakthrough

Climate change has become one of the defining challenges of the twenty-first century, requiring action across all sectors of the global economy. International shipping, which carries approximately 90 per cent of world trade, occupies a unique position within this debate. While shipping remains one of the most energy-efficient modes of transport, the sector is responsible for nearly 3 per cent of global greenhouse gas (GHG) emissions and faces increasing pressure to contribute to global decarbonization efforts.

Over the past decade, the International Maritime Organization (IMO) has progressively strengthened its climate agenda, culminating in the adoption of the 2023 IMO Strategy on Reduction of GHG Emissions from Ships and the development of the proposed IMO Net-Zero Framework. These developments signal a significant shift in maritime governance: climate change is no longer viewed solely as an environmental issue, but as a strategic challenge that will influence trade, investment, technology, energy systems, and international competitiveness.

However, the adoption of global ambitions is only the first step. As negotiations continue on the proposed Net-Zero Framework, attention is increasingly turning toward implementation. The question is no longer whether international shipping should decarbonize, but how States, industries, and stakeholders can collectively achieve this transition while ensuring that it remains just, equitable, and economically viable.

The Next Challenge – Implementation

The discussions surrounding the proposed IMO Net-Zero Framework illustrate the growing complexity of global climate governance. While broad agreement exists on the need to reduce emissions from international shipping, significant differences remain regarding how the costs and responsibilities of the transition should be shared.

For many developed countries, climate measures are increasingly viewed as necessary investments in a low-carbon future. For developing countries, particularly Small Island Developing States (SIDS) and Least Developed Countries (LDCs), the transition raises important questions regarding affordability, access to technology, infrastructure readiness, and economic competitiveness.

The implementation phase will require Member States to confront several difficult questions:

• How can the transition to alternative fuels be accelerated without creating new inequalities between developed and developing economies?

• How can global climate measures avoid disproportionately increasing transport costs for countries heavily dependent on maritime trade?

• What mechanisms will ensure that revenues generated through any future GHG pricing system are distributed fairly and effectively?

• How can developing countries access the technology, expertise, and financial resources necessary to participate fully in the maritime energy transition?

• What role should governments, financial institutions, fuel producers, shipowners, ports, and consumers play in sharing the costs of decarbonization?

These questions extend beyond technical regulation. They touch upon broader issues of climate justice, economic development, and the future of global trade.

Homework for All

The IMO has established one of the most comprehensive international frameworks for reducing emissions from a global industrial sector. Through MARPOL Annex VI, the 2023 IMO GHG Strategy, and the ongoing development of the proposed Net-Zero Framework, the Organization has demonstrated that multilateral cooperation remains possible even in complex and politically sensitive areas.

Yet the success of these efforts will ultimately be measured not by the adoption of strategies or frameworks, but by their implementation. The coming years will require Member States to translate global commitments into national policies, investments, infrastructure development, and practical support for industry and communities.

As negotiations continue, an important question remains: can the international community deliver a transition that is not only environmentally effective, but also economically fair and globally inclusive?

The answer may shape not only the future of international shipping, but also the credibility of multilateral climate governance itself.

Sipho J. Mbatha, Senior Advisor on Legal and Maritime Affairs