Last week, the International Maritime Organization (IMO) agreed on a revised strategy which includes an ambition to reach net-zero GHG emissions from international shipping close to 2050. However, as ICS notes, a global levy on ship’s GHG emissions must now be adopted rapidly if the ambitious goals agreed are to remain plausible.
peaking at the close of the intensive two-week session in London, Simon Bennett, International Chamber of Shipping (ICS) Deputy Secretary General said that ICS greatly welcomes the ambitious agreement reached by governments at IMO today for shipping to achieve net zero emissions ‘by or around 2050′.
But this can only be achieved if IMO rapidly agrees to a global levy on ships’ GHG emissions to support a ‘fund and reward’ mechanism, as proposed by the industry.
… Simon Bennett added, as he pointed out that the checkpoints agreed for 2030 and 2040 are particularly ambitious.
Marine Environment Protection Committee (MEPC 80) key takeaways:
- Carbon intensity of the ship to decline through further improvement of the energy efficiency for new ships
To review with the aim of strengthening the energy efficiency design requirements for ships;
- Carbon intensity of international shipping to decline
To reduce CO2 emissions per transport work, as an average across international shipping, by at least 40% by 2030, compared to 2008;
- Uptake of zero or near-zero GHG emission technologies, fuels and/or energy sources to increase
Uptake of zero or near-zero GHG emission technologies, fuels and/or energy sources to represent at least 5%, striving for 10%, of the energy used by international shipping by 2030; and
- GHG emissions from international shipping to reach net zero
To peak GHG emissions from international shipping as soon as possible and to reach net-zero GHG emissions by or around, i.e. close to 2050, taking into account different national circumstances, whilst pursuing efforts towards phasing them out as called for in the Vision consistent with the long-term temperature goal set out in Article 2 of the Paris Agreement.
ICS is confident that this economic impact assessment will demonstrate that the ‘fund and reward’ proposal, or something similar, is the only practical way forward if the ambitious GHG reduction targets agreed by IMO this week are to remain realistic and achievable, Bennett highlighted.
The ICS ‘fund and reward’ proposal remains firmly on the table as a deliverable solution and will now be subject to a comprehensive impact assessment by UNCTAD to be completed by early next year, so that an economic measure can be adopted in 2025.
… said the ICS Deputy Secretary General
To remind, the purposed levy was a reason for conflict during MEPC 80, with China urging other countries to oppose the idea.
Simon Bennett also backed the idea that the industry urgently needs to reduce the cost gap between conventional and alternative marine fuels and incentivise the production and uptake of new fuels at the scale now required to meet this accelerated transition.
2040 is less than 17 years away and the availability of zero GHG marine fuels today is virtually zero.
… said Bennett
Simon Bennett also expressed that it is very positive that a majority of governments now support a levy for shipping involving flat rate contributions by ships per tonne of GHG emitted to an IMO fund to expedite a rapid transition.