Negotiations have taken place into the early hours of the morning for several days in London.

The 175 countries of the UN’s International Maritime Organization (IMO) have been gathered for marathon negotiations at the organization’s headquarters for the past two weeks, and on Friday it became clear that the countries have reached an ambitious climate agreement for shipping.

The agreement includes all the elements that Danish Shipping has worked for. First and foremost, achieving climate neutrality by 2050 is a major victory to have all 175 countries in the IMO on board, according to Danish Shipping.

“It is truly positive for the climate and historic for shipping that the IMO is now finally accelerating the green transition. It demonstrates a strong global will to address climate change in the sector, and right now I am both happy and relieved that we succeeded,” says Anne H. Steffensen, Director General and CEO of Danish Shipping, who would like to commend the government, led by Minister of Business Morten Bødskov, and the Danish Maritime Authority for their significant efforts.

“Both the Minister of Business and the Danish Maritime Authority have put all their efforts into securing an ambitious agreement, also in the months leading up to the final negotiations this week, and we are extremely grateful for that. Their hard work has paid off, and they deserve great recognition,” says Anne H. Steffensen.

In addition to the goal of climate neutrality by 2050, the agreement also includes milestones for absolute reductions of greenhouse gas emissions from ships by 20-30% in 2030 and 70-80% in 2040. The agreement also includes a strict roadmap for developing a standard for what green fuel actually is, as well as a tax on fossil fuels to make green sailing more attractive. Furthermore, there is a goal that at least 5% of fuels in global shipping should be green by 2030.

“From the Danish side, we have long focused on ensuring that the agreement has a clear link between the overall goal and the tools that will get us there. That is achieved with this agreement, and it sends a strong signal about the willingness to take responsibility and act quickly,” says Anne H. Steffensen.

With the agreement, the countries have agreed to a timeline that enables the adoption of necessary regulations as early as 2025, with the possibility of implementation by 2027. Finally, the agreement recognizes the need to consider the full climate footprint of fuels, including production, rather than just focusing on emissions from the ship itself.

“This agreement sends a clear signal to investors in the production of new green fuels and new green ships that the green transition will happen and that there is a plan for when. We couldn’t have wished for much better,” says Anne H. Steffensen.