A transformative proposal submitted to the International Maritime Organization (IMO) this month could significantly accelerate the adoption of wind propulsion technologies in global shipping. The International Chamber of Shipping (ICS), together with 47 governments worldwide, has put forward a detailed framework for a greenhouse gas emissions pricing mechanism that would directly incentivise the uptake of emissions-reduction technologies like Rotor Sails.
Understanding the Proposal’s Impact on Wind Propulsion
The proposed mechanism introduces several key elements that would strengthen the business case for wind propulsion:
- A mandatory GHG contribution per tonne of CO2e emitted, creating a direct financial incentive to reduce fuel consumption.
- The establishment of an “IMO GHG Strategy Implementation Fund” to support the transition to greener technologies.
- The ability to generate and bank compliance surpluses in early years.
- A reward system for vessels achieving significant emissions reductions.
For wind propulsion technologies like Rotor Sails, these elements create a powerful economic argument. The proposal would enable vessel operators to achieve immediate savings through reduced GHG contributions while potentially benefiting from additional incentives through the Implementation Fund.
Complementing Existing Regulations
This new mechanism would work alongside existing and upcoming regulations to create a comprehensive framework supporting wind propulsion adoption. Under FuelEU Maritime, which came into effect in January 2025, vessels equipped with wind propulsion systems already benefit from a 5% reward factor in their emissions calculations. When combined with the proposed GHG pricing mechanism, this creates a dual incentive structure that could significantly accelerate the uptake of Rotor Sails.
The timing is particularly significant as vessels face increasingly stringent requirements:
- FuelEU Maritime’s mandatory 2% GHG intensity reduction from 2025-2029.
- Ongoing CII rating improvements required year-on-year.
- EEXI compliance driving the need for proven efficiency technologies.
The Economic Advantage
Our analysis shows that if Anemoi Rotor Sails were installed on every suitable vessel in the world’s fleet, the savings per year would be 17 million tonnes of fuel and 56 million tonnes of carbon. Under the proposed pricing mechanism, which suggests rates of USD 18.75, USD 100, or USD 150 per tonne of CO2e, these carbon reductions could translate to annual industry-wide savings of:
- USD 1.05 billion at the lowest proposed rate (USD 18.75/tonne)
- USD 5.6 billion at the medium proposed rate (USD 100/tonne)
- USD 8.4 billion at the highest proposed rate (USD 150/tonne)
These substantial financial benefits would be complemented by:
- Direct savings from reduced GHG contributions
- Potential revenue from banking and trading compliance surpluses
- Additional benefits from compliance with FuelEU Maritime and improved CII ratings
- Savings from reduced fuel usage
Strategic Implementation Timeline
The proposal now enters a critical phase of regulatory development, with several key milestones ahead. First, the Working Group on Reduction of GHG Emissions from Ships will meet at ISWG-GHG 18 in the week of 17 February 2025 to consider the detailed MARPOL amendments for the pricing mechanism. This will be followed by MEPC 83 in April, where the Marine Environment Protection Committee which would need to approve the regulatory text, including the final structure of the IMO GHG Strategy Implementation Fund.
If approved, the mechanism would enter into force globally in early 2027, with the collection of annual GHG contributions from ships commencing in 2028. This implementation schedule provides vessel operators with a crucial window to prepare their fleets. With FuelEU Maritime’s requirements having begun at the start of the year, operators who act early can benefit from both regulatory frameworks while potentially banking compliance surpluses for future use.
Looking Ahead: A Stronger Case for Wind Propulsion
The convergence of this proposed GHG pricing mechanism with existing regulations creates an unprecedented opportunity for wind propulsion to make an even greater impact. As Secretary General of ICS, Guy Platten, noted, this proposal represents “a pragmatic solution and the most effective way to incentivise a rapid energy transition in shipping.”
For vessel owners and operators, the message is clear: wind propulsion technologies like Rotor Sails offer a proven path to compliance that will deliver increasing value as these new mechanisms come into force. The ability to reduce both fuel consumption and emissions while generating potential compliance surpluses makes wind propulsion an increasingly attractive investment in the evolving regulatory landscape.
As we await the final decision on this proposal at ISWG-GHG 18 in February 2025, Anemoi remains committed to supporting the maritime industry’s decarbonisation journey. Our Rotor Sail technology is ready to help vessel operators not only comply with these new requirements but thrive in the increasingly carbon-conscious maritime sector.