Waves Over The Bow: Climate Regulations On A New Track

The global shipping industry produces 3% of global annual carbon emissions and is now beginning to feel the heat as pressure mounts for it to reduce greenhouse gas emissions to a net-zero goal by 2050. Industry efforts to date have been led by the International Maritime Organization (IMO). These efforts have, however, lagged far behind other industries. Recent reports and measures taken by various governments suggest that the global shipping industry may need more aggressive measures to reduce emissions and enhance sustainability to ward off government intervention. But any such measures will not be without potential risks.

Background

The United Nations Intergovernmental Panel on Climate Change recently published its Sixth Assessment Report. This report concluded that "human influence has warmed the atmosphere, ocean, and land," and "limiting human-induced global warming to a specific level requires limiting cumulative CO2 emissions, reaching at least net zero