MEPC 85: Greek shipowners back Liberia-Panama proposal ahead of IMO talks

The Union of Greek Shipowners (UGS) supports a Liberia-Panama proposal for upcoming IMO talks on September 1st, ahead of the MEPC 85 meeting. The UGS believes emission targets should be determined by what the bunker market can provide, citing "significant weaknesses" in the currently approved New Zealand Framework (NZF). They argue that global shipping regulations should account for the availability and pricing of alternative fuels.

The UGS backs the Panama-Liberia approach as a "balanced and pragmatic foundation" for negotiations, as it reflects practical constraints around alternative marine fuel supply and cost. They also welcome the proposal's focus on vessel energy efficiency, stating that improvements will be crucial while suitable alternatives remain unavailable or costly.

Liberia submitted the proposal to MEPC 85, building on a previous proposal by Argentina, Liberia, and Panama at MEPC 84. The framework would remove GHG pricing and set reduction targets based on the affordability, availability, and scalability of low-emission fuels. These targets would be reviewed every five years, with surplus units serving as the sole compliance mechanism.

Ships that exceed their GFI target could generate units used by others, while units could be banked or borrowed from up to two consecutive years. The UGS also noted that Japan's proposal acknowledges challenges in future fuel supply, proposing a softer approach to GFI reduction targets from 2030 onwards and replacing NZF payments with a "direct contribution" mechanism.

UGS President Melina Travlos emphasized the need for ambitious but realistic targets that align with technological capabilities and market realities. The Liberian proposal received support from several IMO member states during MEPC 84, but faced opposition from others and climate groups. Further debate on proposals will occur at upcoming IMO meetings before MEPC 85, where a final decision will be made.