Major global shipping lines have urged the International Maritime Organisation (IMO) to create regulatory conditions for accelerating the transition to green fuels.

The shipping lines issued a joint declaration at COP 28 calling for an end date for fossil-only powered new builds, noting that the only realistic way to meet IMO’s 2030, 2040 and net-zero 2050 greenhouse gas (GHG) targets, is the transition from fossil to green fuels at scale and pace.

The joint declaration calls for the establishment of four regulatory cornerstones, which include an end date for new building of fossil fuel-only vessels and a clear GHG Intensity Standard timeline to inspire investment confidence, both for new ships and the fuel supply infrastructure needed to accelerate the energy transition.

The declaration also called for an effective GHG pricing mechanism to make green fuel competitive with black fuel during the transition phase when both are used as well as a vessel pooling option for GHG regulatory compliance where the performance of a group of vessels could count instead of only that of individual ships.

The declaration further called for investments made where they achieve the greatest GHG reduction and thereby accelerating decarbonisation across the global fleet as well as a well-to-wake or lifecycle GHG regulatory basis to align investment decisions with climate interests and mitigate the risk of stranded assets.

The shipping lines, which include, MSC, Maersk, Hapag-Lloyd, CMA CGM and Wallenius Wilhelmsen said a closer collaboration with IMO regulators will produce effective and concrete policy measures needed to underpin the investment within maritime shipping and its ancillary industries that will enable decarbonisation to occur at the pace required.

Chief Executive Officer of Maersk, Vincent Clerc, stressed that an important next step to the green transition of the shipping industry is the introduction of regulatory conditions to maximise the greenhouse gas emission reduction per invested dollar.

He said this includes an efficient pricing mechanism to close the gap between fossil and green fuels as well as ensuring that the green choice is easier to make for customers and consumers globally.

The Chief Executive Officer of Hapag-Lloyd, Rolf Habben Jansen, said the shipping lines believe that a regulatory framework and clear targets are crucial to accelerating the introduction of alternative fuels and reducing the carbon footprint.