MARITIME INSTITUTE OF MALAYSIA

OFFICIAL PORTAL

Navigating Malaysia’s National Shipping Carbon Accounting Framework towards Alignment with the IMO GHG Reduction Strategy

Ts. Egbert Adolf Naintin1,  Assoc. Prof. EUR. ING. Ts. Ir. Dr. Syuhaida Ismail1, and Datuk Hj. Dickson Dollah2

1Maritime Institute of Malaysia, Kuala Lumpur, 2Malaysia Marine Department Selangor

Malaysia is taking significant strides in modernising how it accounts for carbon emissions in the shipping sector, aligning with its ongoing International Maritime Organization (IMO) lobbying strategy and reinforcing its commitment to global maritime sustainability. Nonetheless, this progress is not just about keeping up with international standards, yet also about ensuring that Malaysia plays a proactive role in climate action for future generations. By shifting from an outdated method of self-regulated individual ships to establishing a proactive national initiative, Malaysia is paving the way for a more sustainable shipping sector.

In the past, the country faced many challenges when it came to measuring the carbon footprint of its shipping industry. With over 5,400 registered ships, it was difficult to gather consistent and accurate data on carbon emissions, using rough estimation and survey. Due to rough estimation and survey-based approaches, often resulting in gaps and inconsistencies. This approach meant that policy makers were frequently working with incomplete data, making it hard to develop strategies that could effectively reduce the environmental impact of shipping. However, the current approach, guided by the research efforts from the Centre of Ocean Law and Policy (OLAP) at the Maritime Institute of Malaysia (MIMA), promises to change that by establishing a centralised, reliable system that collects and verifies data across the entire sector.

The new framework is based on a comprehensive, bottom-up approach. Instead of relying on rough estimates that can vary widely, this method collects precise and specific data on fuel consumption from individual ships. By doing so, it ensures that every piece of information is accurate and the overall picture of shipping emissions is clear. This detailed and practical approach allows policy makers to analyse emission trends, forecast exactly where improvements can be made, and implement targeted strategies that reduce emissions in a more effective manner. At the moment, all Malaysian ships of 5,000 gross tonnage (GT) and above comply with the IMO’s Data Collection System (DCS), which mandates carbon emissions reporting for ships above 5,000 GT operating internationally.

One of the key elements of this transformation is the development of clear and enforceable legislation. New laws and policies are being introduced to regulate how emissions are tracked and reported. These regulations are designed to standardise the data collection process across the industry in ensuring that all ships, whether operating locally or internationally, will have to provide information in a consistent standardised format. This legal foundation is crucial because it not only supports the new system but also ensures that there is accountability at every stage. With proper future enforcement, the risk of inconsistent reporting will be greatly reduced, hence making the entire system more reliable.

Another important aspect is the issuance of official shipping notices and guidelines. These guidelines help to make sure that everyone involved, namely ship owners, regulators, and government agencies, is aligned with the standardised procedures. The standardised procedures ensure that data is collected in a systematic and orderly approach. In turn, this leads to a more accurate picture of the shipping industry’s carbon emissions. It also contributes to a clear reference point for evaluating progress towards reducing the carbon footprint, which is especially important given the ambitious targets set by the IMO.

Data management is at the heart of this new framework. The process starts with the collection of data on fuel use and emissions from each ship. This data is then carefully reported and independently verified to ensure its accuracy, transparency, and reliability. Verification is an essential step because it helps to eliminate potential misreporting or discrepancies that might have occurred during the initial reporting phase. Once the data is verified, it is compiled into a centralised and user-friendly carbon inventory. This inventory provides a detailed and transparent record of emissions across the entire fleet of Malaysian-registered ships. Having such a systemised emissions inventory is a major step forward, as it allows policy makers to track progress over time and to identify specific areas where further improvements can be made from its maritime carbon footprint.

Collaboration plays a central role in the success of this new system. Malaysia’s engagement with IMO, through both its lobbying initiatives and alignment with global best practices, ensures that its carbon accounting framework remains relevant on the international stage. The framework encourages close cooperation between various stakeholders, including government agencies, ship owners, and international organisations. By working together, these groups can share their expertise and resources to ensure smooth implementation and compliance, which in turn helps to overcome any challenges that arise. This collaborative approach also means that Malaysia is not working in isolation; instead, it is aligning its efforts with global regulatory standards and best practices.

Such a commitment to international cooperation demonstrates Malaysia’s determination to contribute positively to the global fight against climate change. By actively engaging with international bodies, Malaysia strengthens its position within the IMO in ensuring that its shipping industry remains competitive while adhering to evolving environmental standards.

The role of research institutions, particularly MIMA, is also crucial in supporting Malaysia’s efforts to stay ahead while aligned with the global best practices in maritime decarbonisation. Continuous research helps to keep the system up to date and ensures that policies remain grounded in solid scientific evidence. Additionally, research from IMO-led initiatives, such as the GreenVoyage2050 project, provides a reference point for Malaysia to adopt cutting-edge carbon reduction strategies.

One of the most exciting outcomes of this new framework is the potential for Malaysia to meet and even exceed international targets. The IMO decarbonisation strategy has set ambitious goals for reducing shipping carbon intensity by 40% by 2030 and reaching net-zero emissions by 2050. Through a development of a robust national carbon accounting system, Malaysia is putting itself in a strong position to contribute to these global efforts. The detailed and accurate data provided by the new system will not only help in tracking progress but also in fine-tuning policies and strategies over time to ensure that every possible step is taken to reduce emissions.

Moreover, the investment in further research is a sign of Malaysia’s long-term commitment to sustainability. Continuous research undertaken by MIMA and other research institutions will keep the system up to date and ensures that the policies remain grounded in solid scientific evidence. This research also opens the door to new technological advancements and methods that can further enhance the accuracy and efficiency of carbon accounting.

This research could paves the way for new technologies, such as the artificial intelligence (AI) driven emissions monitoring and predictive analytics to further refine the accuracy and efficiency of carbon accounting. As Malaysia’s system evolves, it is likely to become a model for other countries in the region, especially the Association of Southeast Asian Nations (ASEAN) in demonstrating how well-structured policies and research-backed strategies can lead to significant improvements in environmental management.

Overall, the new national shipping carbon accounting framework marks a turning point for Malaysia’s maritime industry. It is direct response to IMO’s call for more accurate emissions data and stricter regulatory enforcement. By adopting a bottom-up approach that focuses on accurate data collection, rigorous verification, and clear legislation, Malaysia is setting a high benchmark for how shipping emissions should be managed and is aligning itself with international standards and ensuring compliance with IMO’s global decarbonisation roadmap. This progress is not only a win for the environment but also for the country’s international reputation as a proactive player in maritime decarbonisation. It shows that Malaysia is serious about meeting global decarbonisation targets and is ready to play its part in the international shipping community’s efforts to combat climate change.

In conclusion, Malaysia’s moving towards a comprehensive carbon accounting framework in the shipping sector is a positive and transformative step. The new approach overcomes past challenges by ensuring that data is collected in a consistent, accurate, and verifiable manner. With strong legislation, collaborative efforts, and a clear focus on meeting international standards, Malaysia is well on its way to building a sustainable maritime future. This commitment to environmental responsibility and innovation is a message of hope and progress that Malaysia is eager to share with the IMO and the wider world. By integrating IMO’s conventions into national regulations, Malaysia is demonstrating leadership in maritime sustainability, setting an example for other nations to follow.

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