ICS Pushes Levy-Based System Ahead of IMO Meeting

Guy Platten, Secretary General of the International Chamber of Shipping, has released a statement ahead of the UN IMO Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 18) calling for a levy-based GHG pricing mechanism.

The key purpose of the mandatory GHG charge will be to reduce the cost gap between conventional marine fuels and zero/near-zero GHG emission 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 incentivize the accelerated uptake of green energy sources.

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