By Rosemarie Cadogan and Tianna Blades
Studies conducted by the International Maritime Organization (IMO) estimate that in 2018, Green House Gas (GH)G emissions from shipping accounted for approximately 2.89% of global emissions and that this could account for approximately 90% to 130% of 2008 emissions by 2050. During negotiations held from 17–21 February 2025 at the International Maritime Organization (IMO) Headquarters in London UK, Caribbean negotiators discussed technical and economic mid-term measures for implementing the 2023 IMO Strategy on the Reduction of GHG Emissions from Ships (GHG Strategy) which is part of the IMO’s contribution to accelerating shipping’s decarbonisation in line with global climate targets. The 2023 GHG Strategy sets ambitious decarbonization targets for shipping. By 2030, carbon intensity must decline by at least 40% (from 2008 levels), and zero or near-zero emission technologies should account for at least 5% (striving for 10%) of energy use. It aims to peak GHG emissions as soon as possible and achieve net-zero by 2050, considering national circumstances and aligning with the Paris Agreement’s long-term temperature goal.
Discussions at the IMO on the Strategy have centred around how to define mechanisms to measure and set targets for global fuel emissions for specific categories of ships (a Global Fuel Standard (GFS)), calculate revenue mechanisms for carbon pricing on emissions (a universal levy) and the basis for measurement of such emissions – the global fuel intensity (GFI).
The stakes are high for Caribbean Small Island Developing States (SIDS) in these IMO negotiations. They face unique vulnerabilities due to their small populations and markets and susceptibility to climatic shocks. Caribbean SIDS depend heavily on maritime transportation for economic development and livelihoods and possess limited resources for transition from fossil fuels. In 2023, thirteen (13) Caribbean nations imported 5.88 million tonnes of food amounting to US$6.01 billion (FAO, 2024a), and rising freight costs exacerbate economic vulnerabilities, resulting in increased food prices and reduced trade competitiveness. The imposition of a levy will increase transport costs with far-reaching consequences for food security and economic stability. Questions remain regarding how revenue from the proposed economic measures will be distributed, and whether Caribbean nations will have equitable access to these funds.
In this Caribbean Shipping Lanes (CSL) SRC Trading Thoughts, we examine the stakeholder consultation process conducted in Saint Vincent and the Grenadines, Saint Lucia, Jamaica, and Antigua and Barbuda, ahead of the February negotiations. The findings are clear: awareness of the IMO GHG Strategy remains low, with only 5%–10% of stakeholders, including maritime administrations (MARADs), familiar with its details. This highlights an urgent need for stronger economic assessments, capacity-building, broader national consultations and a unified regional negotiating approach to ensure that Caribbean priorities are effectively represented during the upcoming negotiations.
What emerged from the CSL Stakeholder Workshops
The four Caribbean countries engaged in the initial phase of the focus group discussions share commonalities and sustainable development challenges associated with SIDS. (Ongoing discussions are being held with Trinidad and Tobago, Grenada, Dominica and St. Kitts and Nevis regarding similar sessions) These include remoteness, small populations, dependence on ocean resources, reliance on imports, limited access to finance, and vulnerability to climate change impacts.[1]
Conducted in partnership with the Caribbean negotiators at the IMO from respective countries, the CSL conducted 1-2 day in person meetings in the respective Caribbean countries. Stakeholders were drawn from a range of national agencies including Chambers of Commerce, Maritime Administrations, shipping agents, government departments, and Ports Authorities. On average, 20-25 persons attended each session. Online presentations by experts from the Caribbean Maritime University (CMU) and University College London (UCL) provided necessary technical expertise and enhanced stakeholders’ understanding of the terminology, issues and procedures involved.
In our intense interactions, we learned from stakeholders that there is a desire to know more about the Strategy and its mid-term measures. Although varying degrees of familiarity with the subject matter still exist, stakeholders want the IMO’s governance mechanisms to embody transparency, equity and fairness, particularly regarding how revenue collected from a potential levy will be calculated, accessed and disbursed. Participants feel strongly that the levy should be set a rate significant enough to deter polluters and that the resource allocations generated to enable a just and equitable transition should be fair and equitable.This is particularly appropriate as Para 5.4 of the Strategy provides that when developing candidate mid- and long-term GHG reduction measures, due account should be taken to ensure a just and equitable transition that leaves no country behind, including supportive measures.
Participants understand that the mid-term measures will apply to ships of 5000 gross tons (GT) and above. This notwithstanding, there were operational concerns since Caribbean commercial ships conducting intra-regional trade engage in short voyages between islands with small multi-use ports, where the lack of modern infrastructure results in ships spending a significantly higher percentage of their voyage time in ports, contributing to GHG emissions during that time. The negative impacts of short sea shipping and short-term measures under the Strategy regarding the Carbon Intensity Index (CII) were reviewed, with suggestions made for their improvement.
Participants demonstrated some awareness of alternative fuels and zero or net zero technologies. Added incentives from ports developing bunkering facilities for alternative fuels and enabling green shore power are that cruise ships would spend longer in such ports and simultaneously gain carbon credits. Participants were less confident in SIDShaving viable sources of alternative fuel supplies, and that individual countries might not benefit in the short term, due to the challenges and expense involved in transitioning to cleaner fuels. Examining the feasibility of port modernisation and expansion, establishing microgrids and using excess energy onshore were business incentives worthy of further consideration.
The critical need to ensure that national policy instruments and legislative frameworks align with the GHG Strategy was stressed. Policy coherence among cross cutting national strategies such as port sector decarbonisation strategies, national maritime transportation strategies (NMTPs), Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs) is critical, particularly as complementary climate financing mechanisms will be relevant when revenue disbursements come into play.
What’s Next?
CSL’s stakeholder consultation sessions have so far provided valuable insights into gaps in understanding among key stakeholders in the maritime and related sectors. This feedback will support areas for further examination in future consultations at the national level and consolidate positions for the upcoming negotiations. As negotiations at the IMO continue – March and April will see the next round of negotiations – the CSL will continue with consultations, using findings there as a basis to assist our Caribbean negotiators in formulating and representing well-informed positions of the region.
Rosemarie Cadogan is an independent consultant who works with the Caribbean Shipping Lanes Project as Stakeholder Consultant; Tianna Blades is a CSL IMO-Fellow. For more information about the Caribbean Shipping Lanes Project, housed at the Shridath Ramphal Centre of the UWI, see. https://shridathramphalcentre.com/caribbean-shipping-lanes/
[1] UNDP, Small Island Developing States are on the frontlines of climate change – here’s why April 30, 2024, <https://climatepromise.undp.org/news-and-stories/small-island-developing-states-are-frontlines-climate-change-heres-why> Accessed on 11 February, 2025.