The IMO's mid-term measures for greenhouse gas reduction are scheduled to be finalized in 2025 and implemented in 2027. It is difficult to gauge the full impact of these regulations on the future maritime industry. Currently, discussions among IMO MEPC member states, both formal and informal, are underway to develop drafts of these mid-term measures. However, significant differences in opinions persist regarding the imposition of carbon taxes, the scale and allocation of GHG funds among nations, which remain challenging to reconcile. Despite this regulatory uncertainty, shipping companies are tasked with finding appropriate strategies to comply with international environmental regulations.

KR has been collaborating with several domestic and international shipping companies to support their greenhouse gas regulation strategies. Specifically, after setting reduction targets, shipping companies have developed around ten proposals by combining various technological and operational measures to achieve these goals. Each proposal was evaluated for cost-effectiveness, estimating overall costs such as carbon taxes based on EU's ETS and FuelEU Maritime regulations, CAPEX, and OPEX. This Summer issue presents detailed analyses and outcomes of these strategies, providing valuable information to shipping companies currently formulating decarbonization strategies.

Globally, nations are declaring hydrogen economies to achieve their NDC goals, focusing efforts on clean hydrogen production, transport, and supply. The maritime industry is particularly interested in clean hydrogen transport, with expectations for large-scale orders of ammonia carriers and liquefied hydrogen carriers. This issue analyzes global forecasts for hydrogen production, transport, and demand, comparing the advantages and disadvantages of ammonia carriers and liquefied hydrogen carriers, and examining the development status of liquefied hydrogen carriers in Korea and Japan.

HMM has been preparing for years to use biofuels and is currently using them directly on container ships deployed in European routes. This issue features an interview with Mr. Seo Dae-sik, Manager at HMMOS, who shares insights on biofuel as ship fuel, discussing supply logistics, technical challenges, compensation from shippers, and pilot plans for B100 fuel. The comprehensive information obtained from this interview will undoubtedly assist shipping companies currently using biofuels or planning to use them soon.

In this issue’s regulatory update, detailed progress and discussions on the drafting of IMO mid-term measures are covered. With the measures needing to be finalized by spring 2025, bridging the gap in opinions between nations remains a pressing issue.

The Inside KR in this issue highlights the technological developments that are currently of most interest to three major Korean shipbuilders and examines trends in future ship demand based on these developments. Particularly noteworthy are hydrogen, ammonia, and carbon dioxide. KR awarded several AIP certificates related to these topics at the Posidonia 2024 in Athens, Greece.

The recent MacNet Strategy Seminar focused on the establishment of green shipping routes, a joint initiative among governments, shipping companies, and ports worldwide. Discussions at the seminar covered fuel supply, port bunkering infrastructure, crew education, and policy support necessary for establishing green shipping routes. Progress in feasibility studies for the US-Korea methanol container ship green route, scheduled to commence this year, was also shared.

The maritime industry is currently facing diverse alternative fuels and new technologies amid unprecedented regulatory uncertainties. KR's Decarbonization Magazine aims to swiftly disseminate regulatory developments, share expert insights on the pros and cons of various new technologies, and propose directions for the future of the maritime industry.