Sources: International Maritime Organization (IMO)

More than 1,000 delegates are meeting in London this week to discuss new rules aimed at reducing greenhouse gas emissions from international shipping. The talks, hosted by the International Maritime Organization (IMO), run from Sept. 1 to 4.

Although the negotiations focus on the shipping industry, their outcome could affect the wider global economy. Ships carry a large share of internationally traded goods, including food, fuel, raw materials and consumer products.

Why The Shipping Talks Matter To Consumers

The IMO is considering a proposed Net-Zero Framework for international shipping. The framework would introduce new requirements for ships and measures linked to greenhouse gas emissions.

The proposed rules are part of the IMO's 2023 strategy to reach net-zero greenhouse gas emissions from international shipping by or around 2050. The strategy also calls for emissions to fall by at least 20% by 2030 and at least 70% by 2040, compared with 2008 levels.

The framework could influence the cost and choice of marine fuels. Those changes may affect shipping costs and supply chains over time. The final economic impact will depend on the rules adopted and how they are implemented.

Global Trade Faces A Major Transition

The proposed framework would apply to ocean-going ships above 5,000 gross tonnage. According to the IMO, these vessels represent more than 85% of greenhouse gas emissions from international shipping.

Delegates are also examining how emissions from marine fuels should be measured across their full life cycle. This includes emissions linked to fuel production, transport and use.

 Sources: International Maritime Organization (IMO)