The Maritime Emissions Reduction Centre (MERC) has unveiled its first-ever publication, The IMO Mid-Term GHG Reduction Measures as a Driver for Efficiency, shedding light on the transformative impact of efficiency on maritime decarbonization efforts. This report emphasizes how efficiency improvements in existing fleets can significantly support the International Maritime Organization’s (IMO) mid-term greenhouse gas (GHG) reduction targets.
Efficiency: A Cornerstone of GHG Reduction
The publication stresses the critical importance of optimizing efficiency across the global fleet to align with the IMO’s upcoming mid-term GHG reduction framework. Slated for approval in April 2025 and implementation by 2027, this framework includes a phased fuel GHG intensity reduction and an economic mechanism, such as GHG pricing. These measures aim to motivate investment in energy-efficient technologies, reducing emissions and the associated costs of transitioning to low-carbon fuels.
MERC’s analysis highlights that many alternative fuels currently under development are incompatible with existing vessels, creating an urgent need to enhance operational efficiency. By improving fuel efficiency, the maritime industry can reduce its reliance on these alternative fuels, many of which will also face competing demand from aviation and road transport sectors.
Challenges and Opportunities for the Existing Fleet
Stelios Korkodilos, Director of MERC, emphasized the dual challenge of maintaining global trade while reducing emissions. “While alternative fuels are critical for shipping’s decarbonization journey, the efficiency of the existing fleet will remain a decisive factor. With limited availability of drop-in low-carbon fuel alternatives, the sector must address operational efficiency to meet climate goals,” he said.
Korkodilos also reiterated MERC’s commitment to supporting the shipping industry by addressing the barriers hindering the adoption of efficiency-focused solutions. This approach aims to accelerate progress in making existing fleets more sustainable without waiting for widespread availability of new fuels.
MERC’s Mission and Industry Collaboration
Based in Athens, MERC was founded by Lloyd’s Register’s Maritime Decarbonisation Hub in partnership with five leading Greek shipowners: Capital Group, Navios Maritime Partners, Neda Maritime Agency, Star Bulk, and Thenamaris. As a non-profit organization, MERC was created to bridge a critical gap in the industry’s approach to decarbonization by addressing the immediate needs of existing fleets that rely on conventional fuels.
While much of the maritime sector’s focus is on developing future fuels, MERC’s work centers on reducing uncertainties and encouraging the adoption of practical, efficiency-enhancing technologies. Its applied research approach ensures shipowners have access to actionable insights to achieve near-term GHG reductions while preparing for long-term fuel transitions.
Implications for the Bunkering Industry
For the bunkering sector, this development represents a pivotal shift in how fuel efficiency and emissions reduction are prioritized. The introduction of GHG pricing mechanisms, as outlined by the IMO’s mid-term measures, could reshape fuel pricing strategies. This, in turn, may influence how shipowners invest in efficiency-focused solutions, directly impacting fuel consumption patterns. Bunker suppliers will need to stay ahead of these regulatory changes by offering tailored solutions that support their clients’ efficiency goals.
The publication is available to download from MERC website
About Maritime Emissions Reduction Centre (MERC)
The Maritime Emissions Reduction Centre (MERC) is dedicated to advancing the maritime industry’s transition to lower greenhouse gas emissions. Founded to address the challenges faced by the existing fleet, MERC focuses on leveraging applied research and innovation to remove barriers, enabling the adoption of efficiency-enhancing technologies. Through collaboration with key stakeholders, MERC is driving progress toward a more sustainable maritime future.
MERC’s debut publication, The IMO Mid-Term GHG Reduction Measures as a Driver for Efficiency, marks a significant step in supporting the shipping industry’s response to climate change. It also reinforces the organization’s mission to empower fleets with practical solutions for reducing emissions while ensuring the global flow of trade continues uninterrupted.
Source Maritime Emissions Reduction Centre MERC |LR