Maritime Cyprus 2022

Maritime Cyprus 2022

Theme of session: Is the Regulatory framework ready to respond to the 3Cs - Crises, Challenges, Competitiveness?

10 October 2022

Speech by Kitack Lim, Secretary-General, IMO

Mr. President, Commissioner Valean, Ministers, Ambassadors, Excellencies, ladies and gentlemen.

It is a great pleasure to be here with you today at Maritime Cyprus. I would like to express my appreciation to the President of the Republic of Cyprus, the Shipping Deputy Ministry as well as whole Government of Cyprus, the Cyprus Shipping Chamber and the Cyprus Union of Shipowners for organizing this important event.

Communication and cooperation are key to shaping the future of the maritime sector. I thank the organizers for once again bringing together this global audience at Maritime Cyprus to discuss the pressing challenges and opportunities for maritime.

Shipping is the lifeblood of global trade and economic growth.

The COVID 19 pandemic and current geopolitical issues have only served to increase the world's awareness of its reliance on the maritime sector, and specifically on seafarers' invaluable role.

As this audience is well aware, shipping carries over 80 per cent of world trade, providing the safest, most cost-effective, efficient and clean way of carrying cargo.

This is made possible through a framework of regulations and standards applicable across the globe to a truly international industry

IMO is shipping's global standard-setting authority, addressing safety, security, efficiency and environmental performance. Its 50 international conventions form a global regulatory framework that is fair and effective, universally adopted and implemented.

IMO's measures cover all aspects of international shipping – including ship design, construction, equipment, manning, operation and disposal – to ensure that this vital sector becomes progressively more efficient, environmentally sound, energy efficient, secure – and safe.

IMO's global regulatory framework is reflected in regional and national legislation all over the world.

This relationship between IMO's global regulation, and regional and national implementation is strong and very effective.

Safety of shipping lies at the centre of IMO's work and IMO Member States along with the industry and partners work tirelessly to constantly enhance our regulatory framework across many equally important work strands.

In our globalized world, the pandemic highlighted our reliance on global supply chains. Strengthening them through digitalization and automation in shipping will be one of our major tasks in the next years.

Technology holds the key to a safer, cleaner, more efficient and sustainable future for shipping. It enables improved fuel and energy use, automation and vessel management and it supports the development of materials and facilitates vessel construction.

IMO is supporting this digital transformation while ensuring safety and environmental protection, and managing cyber security risks.

We are also aware that the major changes that lie ahead will have considerable impact on the maritime workforce, in particular seafarers, who are indispensable for shipping.

We at IMO focus on addressing these challenges so that green and digital ships of the future can be safe, secure and sociable places of work for all maritime personnel.

IMO is also promoting Women in Maritime and gender parity in the maritime industry. We have seen a significant level of progress in this regard, based on the commitment from the International Maritime Women's Day on 18 May.

Ladies and gentlemen,

The whole industry is experiencing substantial change driven by regulatory requirements, by commercial needs, by changing social expectations and by new technologies. These changes present challenges but also many opportunities for shipping and for economies as we strive for greater sustainability.

IMO is addressing many key areas such as tackling marine litter and biofouling that are all vital important for achieving IMO's objectives of preventing marine pollution by ships and supporting the UN Sustainable Development Goals.

At present, our key area of focus is shipping's contribution to the global mission to combat climate change towards the decarbonization of shipping.

We are on course with the implementation of our IMO Greenhouse Gas Strategy.

Despite the challenges during the pandemic, IMO Member States have worked intensely to move forward on GHG reduction matters and, in 2021, adopted a comprehensive set of measures to achieve the GHG strategy's ambitious goals.

These tangible, mandatory and global regulations take effect next month.

The next year will be crucial, as we implement our work programme towards the adoption of the revised GHG strategy by mid-2023.

IMO Member State have already committed to strengthening the IMO GHG Strategy. Our current discussions therefore focus on agreeing the level of ambition to join renewed and strengthened worldwide commitments towards combatting climate change.

At the same time, IMO Member States have already initiated discussions on

  • a maximum carbon-content for marine fuels and establishing fuel standards; and
  • market-based measures, such as a GHG levy, ETS, feebates or an incentive scheme to encourage development of zero-emission vessels and ensure global availability of zero-carbon fuels.

I appreciate the commitment and the efforts of all Member States and the industry for the outstanding work and achievements we have made so far. I would encourage the IMO Membership to rally behind a compromise proposal.

I have every confidence that the progress will continue at a global level towards an upgraded IMO GHG Strategy.

The transition to a decarbonized maritime sector cuts across all aspects of shipping, from the supply and use of fuels, to safety matters, port operations and training of seafarers.

IMO regulations are framed to drive innovation in ship design and propulsion along with research and investment into alternative low and zero-emission fuels.

To ensure that this energy transition is just and equitable, all proposed policies and measures must take on board the need for skills and technology development in developing countries to bridge the existing gab with developed countries. We are constantly enhancing our capacity building activities to support bridging the gap.

Ladies and gentlemen,

The adverse impact of climate change knows no borders, it requires global solutions and agreements, leaving no one behind.

There are challenges but also excellent opportunities for us all to work together for a greener future.

Ladies and gentlemen,

We live in a time of fundamental shifts caused by changes in the social and geopolitical order while global trade and supply chains face growing challenges.

But shipping remains unchallenged as the main carrier of goods. This thriving maritime sector needs to be supported by a regulatory framework that embraces the highest possible standards, recognized and applied universally all over the world.

We need to collaborate to constantly upgrade these standards and raise our ambition while pursuing decarbonization, digitalization and automation to ensure sustainable shipping.

I am grateful for the strong commitment shown by the maritime community, represented by so many stakeholders here today, to this.

I look forward to the discussions and exchanges of views and wish you a successful Maritime Cyprus.

Thank you.