With over 12 billion tonnes of cargo being shipped each year, global shipping is responsible for around 90% of the world’s trade.
Yet global shipping also has a significant environmental impact. As a result, there are numerous strict regulations designed to control and reduce pollution at sea, along with some ambitious targets to address the environmental impact of global shipping.
In this post, we’ll explore the impact of shipping on the environment, followed by key regulations which aim to reduce harm to the environment.
The Impact of Shipping on the Environment
According to the International Maritime Organization (IMO), international shipping is responsible for nearly 3% of all global greenhouse gas emissions. One report found that, in 2023, global shipping was responsible for over 900 million tonnes of CO2 emissions.
International shipping has further environmental impacts beyond the emissions:
- Ships may introduce invasive species to new habitats, via organisms that migrate in their ballast tanks.
- Vessels can pollute waters with sewage, oil spills, anti-fouling substances, chemical leaks, and solid waste.
- Underwater noise produced by vessels can disturb marine habitats.
Shipping Regulations to Reduce Environmental Impact
Next, we’ll look at some of the regulations in the shipping industry which aim to improve and reduce the environmental impact of shipping on the environment.
International Convention for the Prevention of Pollution from Ships (MARPOL)
MARPOL is the International Convention for the Prevention of Pollution from Ships. This convention was introduced in 1973, and further protocols were adopted in 1978 in response to a spate of tanker accidents. The combined regulations finally came into force in 1983, and the regulations have been updated multiple times since.
MARPOL regulations are designed to prevent and minimise both accidental pollution from ships, along with pollution arising from routine operations.
For more, you can read a full guide to MARPOL regulations, along with all additional protocols and annexes.
ISM Code
The ISM Code promotes a proactive approach to safety and environmental protection by requiring ship operators to establish effective management systems and procedures. Key areas of focus include:
Key preventative strategies in the ISM Code include:
- Management responsibilities, including a Designated Person responsible for overseeing and reporting on all pollution prevention strategies.
- Training to guarantee awareness and competence of all environmental compliance tasks for every voyage.
- Waste stream analysis, and sufficient allocation in the operating budget for each ship to meet the required compliance costs.
- All environmental equipment to be considered critical, and any failure in any of the equipment should be reported to the Designated Person immediately, along with a timeline for repairs and replacements.
- Use of monitoring equipment, seals, interlocks, and other techniques for preventing deliberate non-compliance.
For more, you can read a full guide to the numerous elements of the ISM Code.
Carbon Intensity Indicator (CII)
The International Maritime Organisation introduced the Carbon Intensity Indicator (CII) in 2023. These regulations are designed to reduce the carbon intensity of all ships by 40% by 2030.
As part of these new regulations, all ship owners must calculate their ship’s CII rating. This is a measure of the total carbon emissions compared to the amount of cargo transported over the distance travelled.
CII ratings range from A to E, with an A rating being the most efficient. If a ship gets a D rating for three years running, or if it gets even a single E rating, then shipowners must submit a Ship Energy Management Plan to outline their intended decarbonisation roadmap.
For more, you can read a full guide to CII ratings.
Fuel EU Maritime
Fuel EU Maritime regulations came into force on 1 January 2025. These regulations establish maximum limits for the yearly average greenhouse gas intensity of the energy used by ships of 5,000 gross tonnage and above, whenever they call at European ports.
The regulation introduces progressively stricter greenhouse gas intensity limits, culminating in an 80% reduction by 2050 compared with the baseline established in the legislation.
Fuel EU Maritime focuses on all greenhouse gases, and not just carbon. So, it requires shipowners to account for their methane and nitrous oxide emissions, in addition to their carbon emissions.
For more, you can read a full guide to Fuel EU Maritime.
Marine Insurance and Regulatory Compliance
Everard Insurance Brokers are the specialist marine trading division of James Hallam Limited who are accredited Lloyd’s insurance brokers.
While we cannot help you meet these environmental regulations, we can help you understand the numerous legal obligations you may have to meet. We can then help you access a cost-effective insurance package to help you ensure you at least have the right cover in place to meet all the risks you face both at port and at sea.
Find out more about our specialist marine insurance services.