The Effectiveness of IMO 2023 Regulations on Reducing Greenhouse Gas Emissions.
The International Maritime Organization (IMO) has long been at the forefront of addressing environmental challenges in the shipping industry. In 2023, the IMO introduced a revised strategy aimed at significantly reducing greenhouse gas (GHG) emissions from international shipping. This strategy builds on previous efforts, such as the Initial IMO GHG Strategy adopted in 2018, but with more ambitious targets and stricter regulatory frameworks. The 2023 strategy aims to reduce total annual GHG emissions from international shipping by at least 20% by 2030, 70% by 2040, and achieve net-zero emissions by 2050. These targets are aligned with the Paris Agreement’s goal of limiting global temperature rise to 1.5°C above pre-industrial levels. This paper evaluates the effectiveness of the IMO 2023 regulations in reducing GHG emissions, focusing on their technical feasibility, implementation challenges, and potential impacts on the maritime industry.
Technical Requirements and Innovations
The IMO 2023 strategy introduces several technical requirements designed to accelerate the adoption of cleaner technologies and fuels. According to Zhang et al. (2024), these requirements include mandatory energy efficiency standards for new ships, such as the Energy Efficiency Design Index (EEDI), and operational measures like the Carbon Intensity Indicator (CII). The EEDI mandates that new ships meet specific energy efficiency benchmarks, while the CII requires existing ships to report and reduce their carbon intensity over time. These measures are expected to drive innovation in ship design and propulsion systems, encouraging the use of alternative fuels such as liquefied natural gas (LNG), hydrogen, and ammonia.
However, the transition to alternative fuels is not without challenges. Bilgili and Ölçer (2024) highlight that the infrastructure for producing, storing, and distributing these fuels is still underdeveloped. For instance, while LNG is currently the most widely available alternative fuel, its production and supply chain are not yet capable of meeting the demands of the global shipping industry. Similarly, hydrogen and ammonia, which have zero carbon emissions when produced using renewable energy, face significant technical and safety challenges. These barriers could slow down the adoption of cleaner fuels and limit the effectiveness of the IMO 2023 regulations in the short term.
Implementation Challenges
Implementing the IMO 2023 strategy requires coordinated efforts from multiple stakeholders, including shipowners, port authorities, and governments. Sahin (2024) notes that one of the main challenges is the lack of uniformity in regulatory enforcement across different regions. While some countries have stringent environmental regulations and robust enforcement mechanisms, others may lack the resources or political will to implement the IMO’s requirements effectively. This disparity could create an uneven playing field, with some shipowners opting to register their vessels in countries with lax enforcement to avoid compliance costs.
Another significant challenge is the financial burden on shipowners. The transition to cleaner technologies and fuels requires substantial capital investment, which may be particularly difficult for small and medium-sized enterprises (SMEs) in the shipping industry. Cret et al. (2024) argue that without adequate financial incentives or subsidies, many shipowners may struggle to comply with the new regulations. This could lead to a slower-than-expected reduction in GHG emissions, undermining the overall effectiveness of the IMO 2023 strategy.
Impact on Maritime Ports
Maritime ports play a critical role in the implementation of the IMO 2023 strategy, as they are key nodes in the global shipping network. Sun et al. (2025) emphasize that ports must adapt to the new regulatory environment by investing in infrastructure to support alternative fuels and energy-efficient technologies. For example, ports will need to develop facilities for bunkering LNG, hydrogen, and ammonia, as well as provide shore power to reduce emissions from ships at berth. These investments are essential for enabling the shipping industry to meet the IMO’s GHG reduction targets.
However, the transition to greener ports is not without its challenges. Many ports, particularly in developing countries, lack the financial and technical resources to make the necessary investments. Sun et al. (2025) suggest that international cooperation and funding mechanisms, such as the Green Climate Fund, could play a crucial role in supporting port modernization efforts. Without such support, the effectiveness of the IMO 2023 regulations could be significantly diminished, as ports are a critical link in the global supply chain.
Role of Policy Instruments and Uncertainty
The success of the IMO 2023 strategy depends not only on technical and operational measures but also on the effective use of policy instruments. Cret et al. (2024) argue that a combination of market-based measures (MBMs) and command-and-control regulations is necessary to achieve the desired GHG reductions. MBMs, such as carbon pricing or emissions trading systems, can provide economic incentives for shipowners to adopt cleaner technologies and fuels. At the same time, command-and-control regulations, such as the EEDI and CII, ensure that all ships meet minimum environmental standards.
However, uncertainty remains a significant barrier to the effective implementation of the IMO 2023 strategy. Cret et al. (2024) highlight that the lack of clarity on future fuel prices, technological advancements, and regulatory developments creates risks for shipowners and investors. For example, the high upfront costs of investing in alternative fuels may deter shipowners if there is uncertainty about the long-term viability of these fuels. Addressing this uncertainty requires clear and consistent policy signals from governments and international organizations, as well as greater transparency in the regulatory process.
Potential Impacts on the Maritime Industry
The IMO 2023 strategy is expected to have far-reaching impacts on the maritime industry, both positive and negative. On the positive side, the strategy could drive innovation and create new business opportunities in the green shipping sector. For example, the demand for energy-efficient ships and alternative fuels is likely to spur investment in research and development, leading to technological breakthroughs that could benefit the entire industry. Additionally, the strategy could enhance the industry’s reputation by demonstrating its commitment to environmental sustainability.
On the negative side, the transition to cleaner technologies and fuels could disrupt existing business models and create financial challenges for some stakeholders. Bilgili and Ölçer (2024) warn that the high costs of compliance could lead to consolidation in the shipping industry, with smaller operators being forced out of the market. This could reduce competition and increase freight rates, ultimately affecting global trade. Furthermore, the uneven implementation of the IMO 2023 regulations across different regions could create competitive disadvantages for shipowners and ports in countries with stricter enforcement.
Conclusion
The IMO 2023 regulations represent a significant step forward in the global effort to reduce GHG emissions from the shipping industry. By setting ambitious targets and introducing stringent technical and operational measures, the strategy has the potential to drive meaningful progress toward decarbonization. However, its effectiveness depends on overcoming several challenges, including the development of alternative fuel infrastructure, the financial burden on shipowners, and the need for coordinated international action. While the road ahead is fraught with uncertainty, the IMO 2023 strategy provides a clear framework for achieving a more sustainable future for the maritime industry. Continued collaboration among stakeholders, supported by robust policy instruments and financial incentives, will be essential for realizing the full potential of these regulations.
References
Bilgili, L., & Ölçer, A. I. (2024). IMO 2023 strategy—Where are we and what’s next? Marine Policy, 160, 105953.
Cret, L., Baudry, M., & Lantz, F. (2024). How to implement the 2023 IMO GHG strategy? Insights on the importance of combining policy instruments and on the role of uncertainty. Marine Policy, 169, 106332.
Sahin, A. U. (2024). IMO 2023 Revised Emission Reduction Strategy and Regulatory Challenges of Maritime Decarbonization. European Journal of Commercial Contract Law, 16(1), 25–33.
Sun, R., Abouarghoub, W., Demir, E., & Potter, A. (2025). A comprehensive analysis of strategies for reducing GHG emissions in maritime ports. Marine Policy, 171, 106455.
Zhang, C., Zhu, J., Guo, H., Xue, S., Wang, X., Wang, Z., Chen, T., Yang, L., Zeng, X., & Su, P. (2024). Technical Requirements for 2023 IMO GHG Strategy. Sustainability, 16(7), 2766.
