Climate change is considered one of the most pressing issues of our time and is a major concern to marine insurers The shipping sector accounts for around 3% of global CO2 emissions and international agreements on the need to combat climate change require the reduction of greenhouse gas emissions from shipping. Under all projected scenarios, in 2050, a large share of the total amount of CO2 reduction will have to come from the use of low-carbon alternative fuels. Whilst there is currently no agreement on which fuel or fuels will be favoured it is crucial for carriers to assess potential safety concerns associated with all alternative fuel types and implement proper risk management. Safety must not be an afterthought.
There is a significant amount of work being undertaken at IMO, the European Union and elsewhere which is being closely monitored by IUMI. We will contribute towards any necessary safety regulations and will support industry initiatives such as the Poseidon Principles for Marine Insurance.
Read our full update:
Policy Agenda January 2025 – Safe Decarbonisation and Alternative Fuels
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