The International Chamber of Shipping (ICS) is pleased that progress has been made over the past week on the International Maritime Organization’s 17th meeting of the Intersessional Working Group on Reduction of GHG Emissions from Ships, but much more needs to be done.
According to ICS, positively the concept of a universal GHG contribution by ships per tonne of CO2e emitted remains firmly on the table, with strong support from a clear majority of IMO Member States. There is broad agreement, as advocated by the shipping industry, about the need to reduce the cost gap with conventional marine fuel oil to incentivise a rapidly accelerated uptake of zero/near-zero GHG fuels, so that achievement of net zero emissions by or close to 2050 remains plausible and possible.
Notwithstanding this strong support for a universal GHG contribution or something similar, ICS acknowledges the legitimate questions about this form of maritime GHG emissions pricing mechanism among some governments such as China and Brazil.
… said the Organization in its statement
As informed, when these complex negotiations resume at IMO this week, ICS will continue to work with governments on all sides of the debate to find a workable solution that can enjoy broad consensus support when the package of new GHG reduction regulations for international shipping is approved by IMO next year.
To remind, in a joint statement recently published by ICS, BIMCO, CLIA, Interferry, ICS, IPTA, Intertanko, and WSC, they called for the development and implementation of GHG reduction measures that are practical, data-driven, and technology-neutral. Accordingly, the measures should:
- On a pathway to net zero, achieve immediate and demonstrable net reductions in GHG emissions as a priority.
- Use a realistic, goal-based approach that is data-driven and fuel and technology neutral.
- Minimize administrative burdens while ensuring effective compliance enforcement.
- Incorporate flexible compliance mechanisms to allow investments where the most benefits can be realized.
- Take into account the GHG-intensity of fuels on a lifecycle/well-to-wake basis consistent with LCA Guidelines/IPPC principles/shoreside certifications.
- Allow the broader shipping industry access to collected funds for the direct development of technology, fuels, and measures to support decarbonization efforts.
- Send a clear signal and provide incentives to shipping companies, energy producers, marine fuel suppliers and technology manufacturers to help de-risk investment decisions, support early adopters and protect them from penalization, and enhance cost certainty to ship owners and charterers.
- Reduce or close the cost gap between zero and near-zero GHG fuels and traditional (fossil) fuels while minimizing disproportionate negative impacts on trade, recognizing that technological retrofits and the uptake of energy sources and less GHG-intense fuels available now are crucial to decarbonizing the existing fleet.
- Ensure there is no double counting of emissions or payment for emissions into more than one system, and regional or national programs are avoided or are sunset/harmonized with IMO requirements.
- Identify timelines for periodic assessments of fuels and technologies, with realistic phase-in/out periods and s timelines for review and consideration of future cost increases.
