The new report, Seizing the Global Opportunity: Partnerships for Better Growth and a Better Climate, states that because shipping companies operate in so many different countries, the transaction cost of having different policies in different states would be prohibitively high. "However, IMO has made little progress thus far."

Two systemic market failures have kept the industry from embracing and rewarding energy efficiency measures. First, there is little reliable information on ship efficiency and the expected gains from different technologies and operational measures. Second, incentives are split between the ship owner and charterer.

Fully embracing available efficiency measures could significantly reduce the sector's emissions, states the report. Fuel represents 50 percent or more of a ship's operating cost, and there are several cost-effective ways to increase fuel-efficiency.

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