Despite a one-year delay in the IMO carbon levy, shipping firms continue to invest heavily in emissions-reducing technologies, reports Reuters.
The global shipping industry is continuing to invest billions in emissions-reducing technology despite a one-year postponement of a proposed International Maritime Organization carbon levy, reports Reuters.
The United States and Saudi Arabia led the opposition to the IMO's US$380-per-tonne carbon tax, securing a delay last October. Analysts had warned that the absence of a global framework might slow investment, but most shipping firms told Reuters they remain committed to decarbonisation.
A Reuters survey of 15 companies found that 10 said regional regulations and long investment cycles justified staying the course. Vessel order data showed that ships capable of running on alternative fuels are dominating newbuilding through 2028.
Hakan Agnevall, chief executive of Wartsila, stated that the one-year delay is unlikely to deter customers who plan on a 30-year horizon. 'It's not bold to say that regulations will change during those 30 years,' he said.
Dual-fuel vessels now account for 74 percent of containership and vehicle carrier orders, with 1,126 delivered or on order, according to World Shipping Council data. Investments in such ships exceeded $150 billion by December.
While Pacific Basin opted for four oil-fuelled newbuilds, most owners are pursuing dual-fuel ships using LNG, methanol, or ammonia. Maersk has tested ethanol alongside LNG and methanol, while CMB.Tech is investing in ammonia bunkering.
NYK Group reaffirmed its emissions strategy, calling the delay an opportunity for regulatory refinement. MOL stated that the postponement only extends the transition to low and zero-carbon fuels.
Regional rules are driving momentum. The EU's FuelEU Maritime scheme penalises non-compliance and rewards over-compliance, while its Emissions Trading System adds further incentives. Djibouti and Gabon have introduced levies, and Britain plans to extend its trading system to shipping from 2028.
Turkey is considering a similar scheme. Analysts said such measures will boost demand for LNG, bio-LNG, and biofuels over the next five years. 'Whilst the IMO's net-zero framework has been postponed, this does not change our strategy,' said Peninsula's alternative fuels head Nacho de Miguel.
