Ahead of next week’s critical International Maritime Organization (IMO) GHG working group meeting (ISWG-GHG 18) to further develop MARPOL Convention text to decarbonise shipping by 2050, the Secretary General of the International Chamber of Shipping Guy Platten said:

“We are encouraged that there are now 51 co-sponsors, including the European Commission and ICS, of a joint submission which sets out fit for purpose text in support of a levy-based GHG pricing mechanism, with ships making annual contributions per tonne of CO2 equivalent emitted to a proposed IMO GHG Strategy Implementation Fund.

It is clear that there is increasing recognition by governments that a levy-based fund and reward mechanism, complemented by an IMO fuel standard, is the best way forward.

Next week will hold some difficult discussions as some Member States are not yet fully prepared to commit but the reality is that only via a global solution will we meet our net zero targets.

We believe that the levy proposal, that is now supported by governments responsible for a large majority of the world’s shipping tonnage, as well as by the global shipping industry, provides the best and most pragmatic means of decarbonising shipping at speed and scale.

The shipping industry wants a simple, transparent and equitable system that can be put in place quickly and efficiently.”

The amendments to the IMO MARPOL Convention to discussed by IMO next week are scheduled to be approved by the IMO Marine Environment Protection Committee (MEPC 83) in April.

The joint submission by governments and ICS sets out convergent regulatory text for amendments to the IMO MARPOL Convention, which will require shipping companies operating ships on international voyages to make GHG contributions per tonne of CO2e emitted to a new “IMO GHG Strategy Implementation Fund”.

The key purpose of this mandatory GHG charge will be to reduce the cost gap between conventional marine fuels and zero/near-zero GHG emission (ZNZ) fuels (such as green methanol, green methane including biomethane, green ammonia, green hydrogen, and certified biogenic marine fuels including the biogenic component of some biofuel blends) and, to incentivise the accelerated uptake of green energy sources. Revenue generated will be used to reward the production and uptake of ZNZ fuels, and the use of ZNZ technologies, whilst also providing billions of US dollars annually to support the maritime GHG reduction efforts of developing countries.
Source: ICS (International Chamber of Shipping)