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Dominguez: Don’t lose faith in IMO
Arsenio Dominguez, Secretary General of the IMO, urged the global maritime industry not to lose faith in the IMO.
Arsenio Dominguez, Secretary General of the International Maritime Organisation (IMO), who took office at the beginning of this year, has called on the global maritime industry not to lose faith in the organisation as it navigates the complex path toward decarbonisation. Speaking at Tuesday’s launch event of the Maritime Forecast to 2050 hosted by DNV at SMM fair in Hamburg, Dominguez acknowledged the hurdles in the industry’s decarbonisation journey but urged the sector to shift their focus from challenges to the opportunities presented by the ongoing energy transition.
The IMO has been criticised for its slow progress in advancing the regulatory framework aimed at more ambitious decarbonisation targets. However, the process is highly complex, considering that 176 member states must agree on a unified approach to a specific regulation. Amid growing concerns that the energy transition is losing momentum, Dominguez remains optimistic that the industry can achieve nearly net zero by 2050.
“Just look at the report right now, which shows that with energy efficiency measures—you can increase the efficiency of a ship by 16%,” Dominguez said. “So, there are actions that we can take even take before we welcome and receive all the alternative fuels that are there.”
Dominguez stated that continued action and cooperation are essential for progress and that these combined efforts will guide the industry towards achieving its 2050 goals.
No final decision on basket of measures
The shipping industry is closely watching as the IMO moves closer to deciding on a global carbon tax, a regulatory measure anticipated to be a major catalyst for accelerating the sector’s transition to alternative fuels. The carbon tax is expected to create a level playing field by incentivising early adopters who are already investing in cleaner technologies and alternative fuels, while imposing financial penalties on those who continue to rely on high-emission practices.
At the IMO’s Marine Environment Protection Committee (MEPC 81) meeting in March 2024, the majority of countries supported implementing a global GHG pricing mechanism for the shipping industry. This marks a substantial shift towards stronger climate action, with both developed and developing nations, particularly Caribbean Island states, advocating for robust measures. As a result, the IMO also agreed on a draft framework for GHG pricing and a global fuel standard to reduce shipping emissions, despite some opposition favouring weaker alternatives. These will now undergo a detailed assessment before being approved in spring 2025 to allow their entrance into force in 2027.
As the IMO prepares for the upcoming MEPC meeting in October 2024, the organisation is working to refine its “basket of measures” aimed at reducing maritime emissions. These include both technical and economic strategies designed to support the global transition to cleaner shipping practices. Dominguez said that a final decision is not expected at the next session, but he assured that the process is on track. Specifically, the IMO MEPC 82 will review the preliminary findings of a comprehensive assessment on the impact of the proposed mid-term measures on Member States, covering all aspects, including the modelling of revenue disbursement, and impact on global fleet and trade patterns.
“We have time—the member states were all together in setting up the target by October 2025. Yes, it’s just over a year from now, but the progress is on track with the different timetables that we put in place in order to get the necessary information and find an educated and informed decision, as well as taking on board all the concerns that are there,” he added.
There is still a lot of debate about how billions of dollars will be used once a global carbon levy is in place. The IMO Secretary-General pointed out that while no final decision has been made, the primary focus is on ensuring that the economic measures support in-sector applications, such as technical cooperation with smaller developing states and least developed countries, and support seafarers through education and training. Additionally, there is consideration of how shipowners and early movers in adopting green practices might benefit from the funds, all aimed at achieving the broader transition goals within the maritime industry, he said.
Dominguez acknowledged that many actions needed to meet shipping’s environmental goals depend on collaboration with other sectors, such as the energy sector, which is beyond the IMO’s direct authority. He highlighted the importance of looking outwards and engaging these sectors, drawing on experiences like the IMO 2020 sulphur reduction. He noted that his role involves raising awareness among member states and other industries about the importance of shipping in their national strategies.