Shipping has been included in the EU's new Green Deal at its launch on Wednesday, but a German industry group and a green group have reservations about its efficacy.
The deal, unveiled by European Commission president Ursula von der Leyen, includes a law to make Europe climate-neutral by 2050.
Other measures include a 50% to 55% emissions reduction target for 2030 and a fund worth €100bn ($111bn) to finance the transition.
This compares to a 40% target set by the IMO for 2030, and a 50% cut by 2050.
The Commission also said taxes on fossil fuels and transport will be on the table.
It estimates that it will cost close to $13trn to reach the 2050 target.
The European Parliament and the European Council still need to endorse the plan.
"The European Green Deal is our new growth strategy," von der Leyen said.
German shipping questions EU 'trading scheme'
The German Shipowners Association endorsed the Green Deal but said it will raise the cost of carbon emissions without actually lowering them.
"The effectiveness of the trading scheme is therefore highly questionable, especially because it is only a regional instrument," chief executive Ralf Nagel said.
"Shipping itself today is concentrating on real carbon emission reduction, not on a theoretical one."
The German Shipowners Association is focused on coming up with practical ways to protect the climate by negotiating with the International Maritime Organisation, he said.
"This is why we need a highly skilled diplomatic European Commission and EU member states in London with strong negotiating skills that ... will contribute towards driving the ambitious objectives of the IMO forward on a global scale," he said.
The EU should also invest in new-fuel research and development to help the shipping industry present its own approach to decarbonisation, he said.
"This will call for a technological revolution; after all, we lack CO2-neutral fuels and drive technologies," he said.
"Europe should become a worldwide cluster of excellence, with the EU Commission working together with its business community, not against it.”
More work needed
Transport & Environment (T&E), which calls itself Europe’s leading research and campaign group on clean transport, also welcomed the announcement but warned that more needs to be done in transport.
William Todts, executive director of T&E, said: "The European Green Deal could be a defining moment in the fight against pollution and climate change.
"The plan to end aviation’s tax holiday, make sure shipping pays for its emissions and mandate the deployment of clean fuels and technology is welcome."
He added: "Of course this is just a declaration of intent. The devil will be in the details of the new laws and whether EU governments support the Green Deal, but it is a good start.”
Climate laggard?
T&E called shipping one of the biggest climate "laggards".
It will now be included in the ETS, the European carbon market where emissions units are traded and limits are set.
Todts said it was reassuring that the IMO, which he views as sabotaging climate progress for at least two decades, is only mentioned in passing, as a body that the EU should coordinate with.
But T&E added that the plan to boost “sustainable alternative fuels in different sectors” risks reopening the door for gas, a fossil-fuel, and land-hungry biofuels.
“We’re facing a climate and environmental emergency. We really can’t afford to waste time revisiting failed policies like the promotion of biofuels," Todts said.
"Europe’s green energy policy is driving deforestation and wildlife destruction worldwide. We need to end this now, not make it worse. What we do need though is a realistic plan to deploy zero-emission electrofuels in aviation and green hydrogen in shipping,” Todts added.
Climate activist Greta Thunberg said on Wednesday that many pledges by national governments to balance out emissions using carbon markets did not include the impact of shipping, aviation and international trade, and called for quicker action.
A leaked and incomplete draft of the deal in late November had suggested the EC would propose including shipping in the ETS.
