The global shipping industry, which carries 90 percent of all global trade by volume, has started to acknowledge the urgency of climate change, and is taking steps to minimize its environmental impact. On Jan. 1, 2020, cleaner fuel standards for shipping will take effect globally.
In the meantime, governments will be collaborating on additional measures to reduce the environmental and climate impact of the global maritime trade system.
As matters stand, the shipping sector, ranked alongside countries, is the world's sixth largest greenhouse gas (GHG) emitter.
The good news is that under an ambitious IMO agreement concluded last year, the shipping sector must reduce its GHG emissions to "at least" half of their current levels by 2050, while also taking steps to start reducing emissions before 2023 . The bad news is that discussions over the best policies for achieving these goals have stalled.
Fuel is now the single biggest operating expense in shipping, which means that early adopters of technologies that reduce fuel costs can offer better freight rates and achieve a competitive advantage.
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