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IBIA: Inconclusive talks on bunker fuel carbon tax, R&D levy proposals at MEPC 76

While several delegations supported the revised R&D proposal, there are also divergent views including concerns regarding allocation of money.

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The International Bunker Industry Association (IBIA) on Friday (18 June) published an update regarding outcome of MEPC 76:

The 76th session of the IMO’s Marine Environment Protection Committee (MEPC 76) has adopted a workplan for how to proceed with work on identifying appropriate mid- and long-term measures to put shipping firmly on a path toward carbon neutrality.

The 6-day session, from 10 to 17 June, spent the majority of the available time to discuss potential policy instruments for reducing greenhouse gas emission from international shipping, managing to adopt short term energy efficiency measures but making no progress on two different proposals aimed, respectively, at funding research into low-carbon alternatives and incentivise a move away from fossil fuels.

MEPC 76 had for its consideration a revised proposal for an International Maritime Research and Development Board (IMRD) first out forward by a group of shipping organisations, now with broad support from several IMO member states. The key part of the proposal is a mandatory R&D contribution equivalent to $2 per tonne of fuel oil consumed to fund and accelerate R&D of low and zero-carbon technologies.

The initial proposal was discussed at length during MEPC 75. Although the revised version addressed many of the concerns raised at that time, it soon became clear that it would be impossible to conclude debate on this item at MEPC 76. While several delegations supported the revised R&D proposal, there are also divergent views including concerns regarding allocation of money, governance structure, and associated impact assessments. While the authors of the R&D proposal have been at pains to explain that the $2 mandatory levy is not a market-based measure (MBM), some delegations continued to view it as an MBM and questioned the effectiveness of the proposal in that context. Further discussion was suspended until MEPC 77.

After the curtailed discussion on the R&D proposal, MEPC 76 held initial discussions about an actual MBM, namely the much-publicised proposal for a mandatory levy of $100 per tonne carbon dioxide equivalent on heavy fuel oil from 2025, as a starting point. This is intended to incentivise the move away from business-as-usual fossil fuels to low and zero-carbon alternatives.

Once again discussions showed divergent views on the proposal, with concerns raised about impact on states, the size of the levy, distribution of funds and other elements, but there was also considerable support. Further discussions on the proposals, as well as further submissions on MBMs, have been invited for MEPC 77.

With discussion on the R&D proposal and MBMs proving unconclusive, MEPC 76 turned its attention to agreeing on a work plan, following a number of submissions on how to progress the next stages of IMO’s work to cut GHG emissions from ships between now and the revision of the initial GHG strategy in 2023.

After long discussions, MEPC 76 adopted a work plan on the concrete way forward to make progress with candidate mid- and long-term measures.

  • Phase I – Collation and initial consideration of proposals for measures (Spring 2021 to spring 2022);
  • Phase II – Assessment and selection of measures(s) to further develop (Spring 2022 to spring 2023); and
  • Phase III – Development of(a) measure(s) to be finalized within (an) agreed target date(s).

The above will entail an enormous work load. Already, hundreds of proposals and commenting documents have been submitted to the IMO on issues related to GHG reduction. Every potential new policy tool must be assessed for the potential impact on states as well as trying to identify the actual emissions reduction potential.

Much of this work will happen between MEPC meetings through intersessional working groups (ISWG-GHG) and correspondence groups, not to mention research and negotiations between Member States and NGOs with consultative status at the IMO.

Note: Manifold Times’s coverage of MEPC 76 with timeframe ranging from the start of the meeting to the current date of publication can be found below:

Related: IBIA: IMO approves indicative example of bunker supply licence
Related: IMO: Meeting summary of Marine Environment Protection Committee (MEPC 76)
Related: EDF: IMO MEPC 76 concludes ‘with much to look forward to in the months to come’
Related: IBIA: Inconclusive talks on bunker fuel carbon tax, R&D levy proposals at MEPC 76
Related: Shipping industry urges governments to act on USD 5 billion decarbonisation fund
Related: T&E: UN greenwashes shipping with hopelessly weak carbon efficiency target
Related: Clean Arctic Alliance: International shipping body drops the ball on Arctic climate crisis
Related: IMO adopts key measures to reduce ships’ carbon intensity; establishes ship rating system
Related: MEPC 76: IMO environment meeting begins; set to adopt GHG cutting measures

 

Photo credit and source: International Bunker Industry Association
Published: 21 June, 2021

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Methanol

GENA Solutions: Total renewable and low-carbon methanol project pipeline increases from 61.8 to 62.2 Mt by 2032

Information shared by MI – the Global Methanol Alliance meant to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

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MI – the Global Methanol Alliance recently shared with Manifold Times the renewable and low-carbon methanol project pipeline August 2026 release produced by GENA Solutions Oy.

Information from the release is meant to provide the bunkering publication’s readers with insight on renewable methanol availability, and to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

Key takeaways from GENA’s August 2026 Methanol release are as follows:

  • As of the end of August 2026, GENA tracks 286 renewable and low carbon methanol projects, representing 62.2 Mt of capacity by 2032. This includes 25.1 Mt of e-methanol, 25.9 Mt of biomethanol, and 11.2 Mt of low carbon methanol capacity.
  • Two new projects were added to Project Navigator last month, while one frozen project was excluded. The project pipeline increased by 0.4 Mt month on month.
  • Four new offtake agreements were registered during August, including two biomethanol and two e-methanol agreements.
  • About 8% of the cumulative renewable methanol project pipeline capacity has reached FID so far, with another 11% at the FEED stage.
  • Considering the current uncertainty around regulatory developments and demand growth, GENA projects that renewable methanol capacity could reach 6 Mt to 12 Mt by 2031.

Note: The full article can be viewed here.

Renewable methanol project pipeline 4 Renewable methanol by feedstock 8 Renewable methanol by region 7 Project pipeline by status Methanol capacity scenarios

 

Photo credit: GENA Solutions
Published: 4 September, 2026

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Business

Singapore: MPA urges maritime firms to prepare for potential haze with plan

MPA encourages all maritime companies, especially those with workers performing outdoor work to maintain a business continuity plan for haze.

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RESIZED SG bunker tanker

The Maritime and Port Authority of Singapore (MPA) on Monday (31 August) issued Port Marine Circular No. 9 of 2026 on steps for maritime companies to take for potential haze affecting Singapore:

BUSINESS CONTINUITY PLAN FOR HAZE

This circular supersedes Port Marine Circular No. 09 of 2023.

With reference to the National Environment Agency’s (NEA) joint media release issued on 9 August 2026, hotspots were observed in parts of Sumatra and Kalimantan, with prevailing winds potentially bringing smoke haze towards Singapore. The dry conditions may further increase the likelihood of haze affecting Singapore. The Maritime and Port Authority of Singapore (MPA) encourages all maritime companies, especially those with workers performing outdoor work to maintain a business continuity plan for haze.

MPA advises all maritime companies to monitor the PSI level through the media and the NEA’s website (www.haze.gov.sg), keep at least a one-week supply of N95 masks for workers especially those who work outdoors, and observe the Ministry of Manpower’s (MOM) Haze guidelines and advisory for work which can be found on their website (www.mom.gov.sg/haze). The latter include guidelines to ensure that stocks of N95 masks are periodically inspected, remain serviceable, and not expired.

The visibility in the Singapore Strait and port waters could be significantly reduced in the event of haze. During periods of restricted visibility, shipmasters are advised to keep a proper lookout and navigate with caution. They are also advised to comply with the International Regulations for Preventing Collisions at Sea and in particular Rule No. 19, Rule No. 20 and Rule 35 concerning conduct of vessels in restricted visibility, exhibition of navigation lights and sound signals in restricted visibility, respectively.

In the interest of safety of navigation and life at sea, the Port Master may restrict the movement of harbour craft and pleasure craft in the port waters during reduced visibility conditions.

 

Photo credit: Manifold Times
Published: 31 August, 2026

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Alternative Fuels

DNV report: Regulatory uncertainty demands fleet strategies built for multiple futures

Report examines four regulatory scenarios, ranging from adoption of IMO NZF in its current form to its outright rejection, energy efficiency uptake, and long-term bunker fuel and technology strategies.

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DNV report: Regulatory uncertainty demands fleet strategies built for multiple futures

Regulatory uncertainty is increasing pressure on shipowners to make investment decisions that remain viable across multiple future scenarios, said classification society DNV on Thursday (27 August). 

According to DNV’s 10th Maritime Forecast to 2050, stronger global regulatory signals could accelerate the uptake of energy-efficiency measures, enabling the global fleet to consume up to 25% less energy by 2050 compared to a scenario where regulation is driven by regions.

The report examines four regulatory scenarios, ranging from adoption of the IMO Net-Zero Framework (NZF) in its current form to its outright rejection, which could lead to a period of prolonged regulatory gridlock, and explores the implications of these outcomes for fuel demand, energy efficiency uptake, and long-term fleet fuel and technology strategies.

Cristina Saenz de Santa Maria, CEO Maritime, DNV, said: “Ships ordered today will operate well beyond 2050, but many of the factors shaping their future performance remain uncertain. Regulatory requirements are advancing faster than the fuel, infrastructure, and technological systems needed to support them, making long-term investment decisions increasingly complex. The industry therefore needs greater clarity and alignment among all stakeholders to provide the confidence required for long-term investment. In the meantime, shipowners need strategies that deliver benefits today while remaining resilient across a range of regulatory and market outcomes.”

Energy efficiency is one of the most immediate and practical levers available to shipowners, delivering value across regulatory outcomes whether implemented at the newbuild stage or as a retrofit. A case study of a hydrodynamic measures retrofit on a 5,000 TEU container vessel showed potential annual fuel savings of 16%, with a payback time of around one to four years depending on future fuel prices. Retrofits can add similar value across many ship types and with sufficient planning can typically be completed during a standard class-renewal dry docking.

The development of the marine low-GHG fuel market remains a key challenge. While significant progress has been made in expanding alternative-fuel capabilities of vessels, scaling fuel production depends on confidence that demand will materialize. DNV projects shipping demand for low-GHG fuels to range from 4 to 22 Mtoe by 2030 and 33 to 185 Mtoe by 2050, depending on regulatory outcomes, with uptake also shaped by future uptake of shore power, plug-in hybridization, nuclear power, and onboard carbon capture systems.

Current project pipelines indicate a maximum global supply of 270 Mtoe by 2030, although actual volumes are likely to be lower due to project delays and other uncertainties, and shipping will need to compete with other industries for its share. However, the cost of reducing emissions varies significantly between fuel pathways, with abatement costs ranging from about 180 to 1,290 USD per tonne of CO₂ avoided, highlighting the importance of regulation and market incentives in enabling low-GHG fuel markets to develop.

Øyvind Sekkesæter, lead author of Maritime Forecast to 2050, said: “Scenarios explored in this year’s report show how different regulatory futures can lead to very different outcomes in energy efficiency uptake, fuel demand, and consequently, GHG emissions. By testing fuel and technology choices across multiple scenarios, shipowners can identify strategies that create value today while preserving flexibility as regulation, fuel availability, prices, and technologies evolve. Strategies that each owner chooses will also be dependent on their fleet type and operating context.”

Key findings from the report: 

  • Several regulatory futures remain possible as the IMO continues negotiations on the Net-Zero Framework, with these outcomes shaping investment decisions, low-GHG fuel uptake, and energy-efficiency deployment across the global fleet.
  • With global regulatory incentives in place, the world-fleet could consume 25% less energy by 2050 than under a scenario limited to regional regulations.
  • Energy efficiency can pay off regardless of regulatory outcome – 5,000 TEU container ship case study shows 16% annual fuel savings from hydrodynamic measures retrofit.
  • Shipping demand for low-GHG fuels could range from 4 to 22 Mtoe by 2030, and 33 to 185 Mtoe by 2050, depending on regulatory outcomes and the availability of these fuels in a competitive global market.
  • Current project pipelines indicate that a maximum of 270 Mtoe of supply could be available by 2030, though actual volumes are likely to be lower due to project delays and other uncertainties, and shipping will need to compete with other industries for its share.
  • Testing fuel and technology strategies across different scenarios can help shipowners identify robust choices for an uncertain transition. Testing, piloting, and verifying technologies can provide the trusted performance data needed to make investment decisions with greater confidence.

Note: DNV’s 10th Maritime Forecast to 2050 can be found here. 

 

Photo credit: DNV
Published: 28 August, 2026

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