Things that Happen Beneath the Surface of the Water

Maritime environmental laws are being strengthened by international organizations, interstate associations, and individual countries. After the unprecedented strong desulfurization regulation of ship fuel, high-intensity regulations to force ships to switch to fuel are expected to continue until 2030. From the perspective of shipowners, they are experiencing triple distress in addition to global uncertainty and economic crisis due to the Covid-19 pandemic and the situation in Ukraine. At times like this, it is important to have a clear understanding of the things on the surface (MEPC meeting minutes), but those who want to see the future must focus on the large and heavy movements taking place beneath the water.

At the most recent IMO MEPC meeting (79th, December 2022), various issues related to ship environmental regulations were dealt with, but it was decided to carefully reconsider the most important matters. At the 80th meeting to be held in July 2023, the following important matters will be discussed, and some of them are expected to reach the final decision stage:

An upward revision plan of the 2050 international shipping carbon reduction target.

A rule prohibiting the entry of ships without eco-friendly power units.

Economic measures such as carbon charge payment and emission trading system.

Results of data collection for reflecting onboard carbon capture systems.

From the point of view of ship owners, the measurement and approval process for the onboard carbon capture system is expected to have the greatest impact. For existing ships using conventional fuel, the last resort to maintain the CII rating above C will be onboard carbon capture technology.

Regarding the fuel conversion of ships, it is necessary to pay attention to the gradual movement beneath the surface in addition to the superficial facts already revealed in the MEPC meeting minutes. For example, various joint development projects (JDPs) of different types are being planned among Korean shipbuilding industries. The general composition of JDPs includes a shipyard, class, and equipment makers. Sometimes local governments, universities, and research institutes are also included. They are carefully carrying out important demonstration tasks, such as hydrogen and ammonia mixed fuel engines and onboard carbon capture systems. When these individual research results are revealed, one of them can be a game-changer for IMO environmental regulations.

The unprecedented intensity of regulations will strongly pressure shipowners over the next decade, leading to the reorganization of the shipping industry. In this period, the willingness and acceptance of new technologies will be the most critical key to a shipowner's success or failure. Ship owners should keep in mind that what is most needed at this point is not a calculator but a strong technological partnership to overcome the relentless storm of environmental regulations.