A new publication from the Maritime Emissions Reduction Centre (MERC) highlights the crucial role of fleet efficiency in achieving the International Maritime Organization's (IMO) Mid-Term GHG reduction targets, according to Lloyd's Register.
The report emphasizes that improving the efficiency of existing ships is essential to reduce the reliance on alternative low-GHG fuels, thereby lowering the overall cost of the energy transition.
The IMO's upcoming mid-term measures, including potential GHG pricing mechanisms, will incentivize investments in technologies that enhance ship efficiency and reduce emissions.
MERC, a non-profit organization established by Lloyd Register and five leading Greek shipowners, aims to address the challenges faced by the existing fleet and support the industry's transition to a low-GHG future.
Stelios Korkodilos, Director of MERC, stated that while alternative fuels are crucial, improving existing fleet efficiency is paramount, given that most new low-carbon fuels are not suitable for current vessels and competition for these fuels will be intense.
MERC will work with industry stakeholders to overcome technical, financial, and commercial barriers to the adoption of efficiency-enhancing solutions.