In continuation of India’s active engagement at the International Maritime Organization (IMO) and following the approval of the Greenhouse Gas Fuel Intensity (GFI)-based compliance measure at MEPC 83 under MARPOL Annex VI, the Directorate General of Shipping (DGS) has issued a comprehensive Guidance Note titled “Guide to the IMO NetZero Framework – Implications for India’s Maritime Sector” This guidance note has been prepared to enable stakeholders across the Indian maritime ecosystem to understand, prepare for, and comply with the forthcoming regulatory requirements under the IMO’s Revised GHG Strategy 2023. The strategy aims to achieve netzero emissions from international shipping by or around 2050, subject to national circumstances through mid-term measures comprising a technical Global Fuel Standard (GFS) and a market-based GHG pricing mechanism.
The GFI-based mechanism, expected to formally come into force in March 2027 and effectively from calendar year 2028, mandates progressive reduction in the lifecycle carbon intensity of fuels used by ships above 5,000 GT engaged in international voyages. The mechanism is applicable to all ships flying the flag of a Party to MARPOL and will have significant operational, economic, and strategic implications for shipowners, ports, training institutes, classification societies, and fuel suppliers.
Key Highlights of the Guidance Note:
- Overview of the IMO regulatory timeline and adoption process
- Explanation of GFI compliance methodology and its difference from a flat levy
- Detailed analysis of cost implications for Indian shipping
- India’s role, position, and rationale for support
- Strategic opportunities for green fuel development and fund access
- Stakeholder-specific compliance actions and preparatory steps
Action Requested:
All stakeholders – including Indian shipowners, managers, port authorities, fuel suppliers, classification societies, and training institutions – are advised to review the Guidance Note in detail and initiate necessary preparatory measures. This includes but is not limited to:
- Monitoring ship-level fuel intensity data
- Reviewing procurement strategies for low-GHG fuels
- Enhancing technical training on GFI methodologies
- Planning green infrastructure upgrades at ports
- Engaging with classification societies for early compliance assessment
The Guidance Note shall serve as an initial orientation document until formal rules and national-level implementation guidance are notified by this Directorate in line with forthcoming IMO decisions.