The proposal comes ahead of IMO technical talks on NZF next month. File Image / Pixabay

• Japan says GFI targets should reflect the pace of fleet replacement.
• New marine fuels are estimated to account for 5.8% of total fuel use in 2030.

Japan has proposed a less stringent path for greenhouse gas fuel intensity (GFI) under the proposed IMO Net-Zero Framework (NZF), saying the approach could address concerns about the impact of the targets on international shipping.

In a submission to the IMO ahead of further discussions in September, Japan said its revised draft amendments are intended to provide a basis for reaching a compromise among member states.

The proposal includes changes to the annual GFI reduction factors as well as the framework's compliance arrangements.

Under the proposed NZF, ships would have to meet two GFI levels: a base target and a more stringent direct compliance target. Japan retains the two-tier approach but proposes lower reduction factors for both.

For the base target, Japan proposes a 7% reduction in 2030, increasing to 21.9% in 2035. Its proposed direct compliance target rises from a 21% reduction in 2030 to 43% in 2035.

Using the document’s 2008 reference GFI of 93.3 gCO2e/MJ, those reductions translate to about 86.8 gCO2e/MJ in 2030 and 72.9 gCO2e/MJ in 2035. This compared to 85.8 gCO2e/MJ proposed in NZF for 2030 and 65.3 gCO2e/MJ in 2035.

Japan says some member states support GFI targets in line with the 2023 IMO GHG strategy, while others have concerns about their impact and feasibility.

It says “massive changes”, including early ship replacement and semi-mandatory major conversion, should be avoided.

The proposal takes account of the existing fleet. Japan says 95% of merchant ships were conventional-fuelled at the end of 2025 and argues that the replacement speed of existing ships should be considered when setting achievable GFI targets.

“It is necessary to find achievable GFI targets based on the replacement speed of existing fleets, using a performance-based approach,” Japan said.

Japan also proposes removing mandatory payments and the IMO Net-Zero Fund from the draft framework. Under its approach, ships would in principle comply through the use of low-emission fuels or surplus units (SUs).

Ships that cannot balance their compliance deficits with surplus units could instead make direct contributions to IMO-approved projects.

Japan says companies could also choose projects aimed at supporting particular new fuels or technologies.

The revised draft also removes the fixed GFI reduction factor for 2040. Japan says future targets should be reviewed periodically and take into account the global availability, affordability and scalability of new fuels and technologies.

Japan says its revised draft provides a possible basis for further discussions aimed at finding a final compromise among IMO member states.