International Shipping and GHG Emissions Agreement

International shipping has become the first industrial sector to establish internationally binding legal targets for reducing Greenhouse Gas (GHG) emissions to zero by or around 2050.

Significance of the Agreement

• The shipping sector contributes to 3% of global GHG emissions annually.
• The agreement could motivate other industrial sectors to adopt greener practices.

Details of the Agreement

• Established by the International Maritime Organisation (IMO), which includes 176 member states.
• Emissions reduction strategy includes: 
  • Emissions pricing and trading systems.
  • Gradually tightening global fuel standards.
  • Targets to reduce emissions by 30% by 2030, 80% by 2040, and achieving zero emissions by mid-century.

Compromise and Implementation

The agreement represents a compromise between small island nations and larger economies over the methods to reduce emissions and generate revenue.

• A carbon levy and a carbon-trading system will help fund the transition and assist developing countries.
• India supported the agreement, aligning it with its green hydrogen initiatives.

Challenges and Criticisms

• The agreement may still allow the use of fossil fuels like LNG and unsustainable biofuels, raising concerns about deforestation and food security.
• The United States did not participate, threatening reciprocal charges and attempting to derail negotiations.

Conclusion

Despite its imperfections, the IMO agreement is a positive development for environmental efforts and multilateral cooperation.