This paper has been prepared to inform Pacific high ambition delegations to IMO negotiations GHG emissions reduction at ISWG11 and MEPC78 in 2022.

The International Maritime Organization (IMO) has agreed on a process to assess the impact of new GHG emissions reduction measures on member states. The current debate at IMO will determine the Impact Assessment (IA) process in which the measures would be tested against. This paper discusses the issue of IAs required for measures proposed under the IMO’s Initial IMO Strategy on reduction of GHG emissions from ships (Initial Strategy). The Initial Strategy recognises that the impacts on states of a measure should be assessed and taken into account as appropriate before adoption of the measure. Definition and processes for preparing such IAs are unclear and have become somewhat weaponized by different negotiating blocs. One school of thought argues that the IA process should be an evolving one developed in parallel with the implementation of candidate measures while others argue that no measure should be agreed until the comprehensive IA is completed and the impacts fully understood and provided for. The issue is closely connected with the concurrent debate over delineating Disproportionate Negative Impacts (DNI) arising from measures and the type and degree of compensation that might be afforded those adjudged to incur DNI.

This paper also discusses the different types of impact assessments such as the Environmental Impact Assessment (EIA) versus the Regulatory Impact Assessment (RIA). IMO employs RIA which does not integrate environmental or social impacts into the assessment therefore a critique of this procedure is demonstrated. The paper concludes by providing a number of potential solutions in addressing the current shortfalls in the IMO’s IA process which would be beneficial to SIDs and LDCs including Pacific Island states.