The United Nations (UN) reports that the maritime shipping industry transports approximately 90% of global trade, accounting for nearly 3% of global greenhouse gas emissions. This amounts to about 1 billion tons of CO2 and other greenhouse gases annually, which would rank the industry as the sixth largest polluting country if it were a nation-state. If left unchecked, emissions from maritime shipping are projected to reach 90-130% of 2008 levels by 2050.
In a landmark agreement reached in late April, members of the International Maritime Organization (IMO) agreed to implement measures to curb greenhouse gas emissions from ship operations after years of tense negotiations.
As per the agreement, ships will be charged a fee of 380 USD for each ton of CO2 emitted beyond the allowed threshold. Additionally, vessels that exceed the higher emission cap will be subject to an extra surcharge of 100 USD per ton.
Ships may be subjected to a fee of 380 USD per ton of excess CO2 emissions. Image: Ulstein. |
The revenue generated from these emission charges will be channeled into the IMO’s Net Zero Fund, estimated to amass a substantial 40 billion USD by 2030. This fund will subsidize zero-emission fuels and technologies, provide financial incentives for vessels operating with minimal or zero emissions, and support innovative initiatives, research, infrastructure development, and transitions in developing nations.
According to the UN, if the draft regulations of the IMO agreement are formally adopted in October this year, the green solutions for the maritime industry will come into force by 2027.
As a rapidly growing export-oriented economy heavily reliant on maritime trade, with over 90% of its exports being shipped, Vietnam is expected to be significantly impacted by the IMO’s agreements on carbon pricing and emission standards.
Data from Vietnam’s Department of Marine and Inland Waterways reveals that the average age of the country’s current fleet is over 17 years, surpassing the global average. Most vessels built before 2020 are not equipped with energy-saving technologies, emission control systems, or optimized hull designs to reduce fuel consumption. Consequently, the implementation of carbon taxes is likely to result in elevated operational costs for shipowners, eroding their profit margins.
Carbon taxes may lead to increased operating costs for shipowners, impacting their profitability. Image: VIMC.
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Amid the ongoing tariff tensions, Vietnam’s key export commodities, including agricultural produce, seafood, furniture, electronics, and garments, are highly price-sensitive in the global market. Hence, elevated shipping rates due to carbon costs could hinder the competitiveness of Vietnamese goods in international markets, particularly in regions with stringent environmental standards such as Europe and North America.
To meet emission reduction targets, vessels will also need to transition to low-carbon or zero-emission fuels like green methanol, ammonia, or hydrogen. However, Vietnam currently lacks the necessary infrastructure and supply chain for these alternative fuels, presenting a significant challenge.
Confronted with these pressing imperatives, shipowners must diligently analyze and calculate their options for compliance. Procrastination in fleet upgrades and technology adoption will result in eroding market share and could even lead to exclusion from global supply chains.
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In response to the urgent demands of the industry’s greening process, the Vietnam Maritime Corporation (VIMC) has devised a strategy for investing in a “green” fleet during 2025-2030. VIMC will prioritize investing in new-generation vessels that are fuel-efficient and environmentally friendly, while actively phasing out older ships that fail to meet IMO environmental standards and exhibit low operational efficiency. |
Loc Lien
– 07:51 06/07/2025
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