This is a legacy page. Please click here to view the latest version.
Tue 3 Apr 2018, 16:29 GMT

Shipping firms could have undue influence over IMO policymaking: Anti-corruption report


NGO urges IMO to reform its governance structure to promote transparency.


The International Maritime Organization's (IMO) headquarters in London.
Image credit: Flickr
With just days left before next week's 72nd Marine Environment Protection Committee (MEPC) meeting, a new study by anti-corruption NGO Transparency International (TI) has warned that private shipping companies and the five top ship registry nations could have undue influence over the policymaking process at the International Maritime Organisation (IMO).

TI's paper, which is due to be published in full next month, assesses three dimensions of the IMO's governance structure: transparency, accountability and integrity.

A summary report released on Tuesday raises key concerns, with TI pointing out that the IMO does not regulate the way governments appoint their delegations. TI notes that governments are therefore able to appoint employees of private companies to their delegations who are then able to determine their government's position on IMO policy - without being subject to conflict of interest rules or a code of conduct.

Citing Brazil as an example, TI notes that the South American country appointed five 'advisors' from Vale S.A - a multinational company with substantial shipping interests - to its national delegation at the IMO's most recent Marine Environment Protection Committee (MEPC 71) meeting, in July 2017.

TI also mentions that eight of the 12 representatives of the Marshall Islands at MEPC 71 were employees of a private shipping registry, International Registries Inc (IRI) Group, which is contracted by the Marshall Islands to manage its registry.

"The employees of private companies who represent member states at meetings can determine their government's position. This typically happens when states with open registries outsource registry management to private companies," TI says.

"There is no requirement for delegates to publicly declare conflicts of interest such as other sources of employment. Thus the IMO, its member states and indeed the public are unaware of the full extent to which private interests are representing governments at meetings," TI adds.

The report also warns that Panama, Liberia, the Marshall Islands, Malta and the Bahamas - which together contribute 43.5 percent of the total funding from the IMO's 170 member states and make up 52 percent of the world's registered commercial fleet - "potentially have exaggerated weight in the IMO policymaking processes, particularly when no mechanism exists to protect against undue influence".

TI's study also posits that NGOs with consultative membership of the IMO "can face expulsion if they criticise the agency or report on country views", and "journalists indicate that they are unable to report freely on IMO meetings".

The paper does note, however, that transparency about the IMO's administration is high, and that information about the remit, powers and rules of procedure of its assembly, council and committees is easily accessible. The IMO itself is not responsible for who member states appoint to their delegations.

"The IMO was assigned the task of limiting and reducing emissions from shipping under the Kyoto Protocol back in 1997," says Brice Bohmer, coordinator of the Climate Governance Integrity Program at Transparency International. "However, it took until 2016 for the IMO to even agree on a roadmap towards an initial strategy, due in 2018, and a revised strategy, due only in 2023. A well-functioning organisation's governance structure should enable decisive action, but the governance flaws identified by our research suggests that this is not happening at the IMO because policy-making could be overly controlled by private companies."

TI urges the IMO to establish a stronger governance framework and engage in a transparent process of open dialogue with its external stakeholders (including civil society and industry), to improve transparency, ensure decision-making processes reflect the public interest, and apply robust integrity rules and measures.

"There should be no delay on action to combat climate change. The Intersessional Working Group on GHG Emissions from Ships meeting in London today should set ambitious targets for reducing emissions in line with the Paris Agreement, and begin taking measurable action now," TI says.

"A guiding principle of UN system is that member states must represent citizens' interests. At the IMO, this could end up being undermined by corporate participation in the place of nation states," comments Rueben Lifuka, vice chair of Transparency International and an environmental consultant. "The IMO has an integral role in helping the shipping industry meet UN Sustainable Development Goal 13 on climate change, and Goal 14 on oceans. Ultimately, it must reform its governance structure to promote transparency and ensure the voices of citizens - alongside industry - are heard."


Vasileios Analytis, Burando Energies. Burando Energies appoints Vasileios Analytis as commercial director in Dubai  

Marine fuel trader promoted following expanded trading activity and commercial development.

Japan Engine Corporation (J-ENG) logo. J-ENG starts development of methanol-fuelled marine engine  

Japanese engine maker targets 2027 completion for UEC50LSJM model following ammonia and hydrogen engine projects.

Mureloil 8,000-dwt vessel render. AYK Energy secures second battery contract with Mureloil for chemical tankers  

Spanish ship owner orders hybrid propulsion systems for two 8,000-dwt vessels transporting biofuels and methanol.

21,700-teu vessel render. DNV approves 21,700-teu container ship design with ammonia fuel capability  

Design by Zhoushan Changhong and CIMC ORIC can accommodate LNG or ammonia propulsion systems.

Yara Eyde vessel render. CMB.Tech invests in Chinese ammonia supply chain ahead of fleet deliveries  

Belgian shipping group secures green ammonia offtake and takes stake in Andefu supply company.

Peter Keller, SEA-LNG. UK P&I Club joins SEA-LNG coalition to support LNG marine fuel adoption  

Insurer brings 50 years of LNG experience to methane pathway coalition focused on maritime decarbonisation.

FCM LNG fuel supply system render. Alfa Laval launches LNG fuel supply system with cryogenic technology  

Swedish firm unveils FCM LNG system for LNG-powered vessels, with marine deliveries planned for 2027.

Union Maritime's chemical tankers with Anemoi Rotor Sails. Union Maritime orders Anemoi rotor sails for two chemical tanker newbuilds  

Wind propulsion technology to help shipowner exceed IMO 2030 greenhouse gas reduction targets.

Iona vessel. Lloyd's Register completes Europe's first major LNG cruise ship dry docks with Carnival  

Iona and Mardi Gras projects required 18 months of planning and in-service passenger inspections.

Anglo-Eastern's ammonia pilot training course. Anglo-Eastern completes pilot training course for ammonia-fuelled vessels  

Ship manager prepares crew ahead of first ammonia-fuelled vessel takeover with inaugural training programme.


↑  Back to Top