The next steps in CO2 reduction for shipping could be determined at the end of October 2016, according to the European Community Shipowners' Associations (ECSA).

The announcements comes on the back of International Civil Aviation Organisation's (ICAO) agreement on a new global market-based measure to control Green House Gas (GHG) emissions from international aviation reached last week.

"We are confident that at the end of this month the International Maritime Organisation (IMO) will decide on the next steps for shipping," said ECSA President, Niels Smedegaard.

The shipping industry has a mandatory global CO2 reduction regime which has been in force since 2013. IMO will now build on the substantial CO2 reductions already achieved by shipping, introducing a global CO2 data collection system, which will be fully operational by 2018.

Based on the data collected and a real understanding of the emissions, realistic targets for CO2 emission reduction can be set for the sector, according to ECSA.

"We fully support our colleagues at the International Chamber of Shipping (ICS) in their recent plea to set a timeline for the further reduction of the shipping sector's GHG emissions," Smedegaard said, adding that "it is important that IMO doesn't stop at data collection and effectively responds to the Paris Agreement on climate change."