HAMBURG, Germany (AP) — The global shipping sector has faced criticism for years over its slow progress in cutting down carbon-heavy emissions from the fuels that power ships transporting goods such as food, cars, and clothes.

Now, the newly appointed chief of the International Maritime Organization (IMO), responsible for overseeing global shipping, is gently pushing for more action. “There’s clearly more that can be done,” said Arsenio Dominguez during a comprehensive interview at the Hamburg Sustainability Conference in Germany this week. “There are still some easy steps we can take.”

Since taking over as secretary-general earlier this year, Dominguez has highlighted actions like optimizing shipping routes through satellite weather data to minimize fuel consumption, cleaning ship hulls to reduce water resistance, and adopting “slow steaming,” a practice of reducing ship speed to cut fuel use and emissions.

Although he acknowledged that some companies are actively working to lower their greenhouse gas output, reaching the IMO’s target of a 30% emissions reduction by 2030 will require the immediate adoption of all possible measures.

Focusing on ship fuels 

Dominguez emphasized that achieving deep decarbonization would ultimately require a shift in shipping fuels, a view shared by industry experts.

Currently, the majority of ships operate on heavy fuel oil, which not only emits carbon dioxide but also sulfur, nitrogen, and other pollutants. Cleaner alternatives, such as hydrogen, ammonia, and biofuels, are already available or in development. However, these options are more costly, not yet widely produced, and only environmentally beneficial if created using sustainable methods. For example, hydrogen can be generated from water and renewable energy through electrolysis, resulting in “green” hydrogen, which does not emit greenhouse gases. However, most hydrogen today is derived from methane via steam-methane reforming, which produces carbon dioxide.

“Fuels, fuels, fuels,” said Bud Darr, MSC Mediterranean Shipping Company’s executive vice president for maritime policy and government affairs, when asked about the challenges of decarbonizing the industry. He added that a significant increase in fuel production and shore-based infrastructure is needed to support the next generation of ships and technologies.

The shipping sector currently contributes around 3% of global greenhouse gas emissions, and these emissions are expected to rise significantly in the coming decades without substantial changes. While other sectors, such as electricity and land transportation, have made notable progress in reducing emissions, largely due to electrification, shipping remains lagging behind.

“The IMO has been extremely slow,” said Bastien Bonnet-Cantalloube, a shipping and aviation decarbonization specialist at Carbon Market Watch, a nonprofit organization. “There was virtually no progress for 10 to 15 years, but things are starting to shift now.”

Last year, the IMO set a goal to achieve net-zero emissions by 2050 or close to it, a move that could drive further momentum but also highlights the considerable distance left to travel.

Calls for a carbon tax on the horizon 

The IMO is under growing pressure to consider a carbon tax, aligning with actions already taking place in certain regions, such as the European Union. Starting this year, large vessels entering and exiting European ports must pay taxes on their carbon dioxide emissions. By 2026, this will extend to include methane and nitrous oxide emissions as well. Some in the industry hope that a global carbon tax from the IMO could replace the need for separate taxes in various regions.

However, there remains significant disagreement among nations and shipping companies over the tax, its rate, and how the revenue should be used.

Big decisions on the IMO’s agenda for next year 

During recent meetings in London, the IMO’s Marine Environment Protection Committee continued drafting proposals to phase in cleaner fuels and establish a system for pricing greenhouse gas emissions. However, the specifics of these plans remain unclear.

“I avoid calling it a tax,” Dominguez said, acknowledging the sensitivity of the issue.

He explained that IMO delegates and member states were considering various options for evaluating ships’ carbon efficiency, setting fuel standards, and collecting revenues for emissions reductions.

The committee is expected to finalize these measures in its April meeting, with formal adoption later in the year. Any decisions would not come into effect until 2027, giving companies and nations time to adjust.

In the meantime, Dominguez stressed the importance of shipping companies continuing to reduce emissions, which for some might involve using liquefied natural gas (LNG) as a fuel.

Ship engine manufacturers have demonstrated that LNG can boost engine efficiency, leading to lower emissions, he said. However, he noted that stopping LNG without having a better alternative would set the industry back to square one.

This is a contentious issue, as studies indicate that leaks from LNG, which is predominantly methane, could negate any environmental benefits from using the fuel compared to other fossil fuels. Environmental advocates argue that reliance on LNG may allow major oil and gas companies to maintain the status quo, delaying a transition to renewable energy sources.