The Chairpersons of the Round Table of international shipping associations (RT) gathered in Rome in February, aiming to discuss current issues the industry is facing, and coordinate efforts going into the new decade, which is considered to be one of the most important in shipping’s history.
While mitigating the dangers of COVID-19 to crews and staff are first and foremost , the impacts of precautionary restrictions on the shipping industry are becoming increasingly visible, even to the general public, explains Paolo d’Amico, who chaired the meeting.
For shipping, as the industry responsible for the movement of the vast majority of the world’s products, raw materials and fuels, the potential implications of ports and authorities restricting free movement or shoreside support are of utmost importance
Nevertheless, in the longer term, the focus will shift on the efforts made to achieve the 50% reduction in GHG emissions by 2050. The need for more research and development by the industry and its suppliers has also be been identified as an essential focus if the 2050 target is to be met.
R&D Fund
In addition, last week, prominent European shipowners affirmed the industry-wide consensus that a R&D fund is the shipping industry’s best route forward towards a zero-emission future. The USD 5bn proposal was established by industry trade bodies, including BIMCO, INTERCARGO, the International Chamber of Shipping (ICS), INTERTANKO and others.
Commented on the occasion, Esben Poulsson, Chairperson of ICS, stated that:
It is clear that the entire shipping industry takes its responsibility to limit the industry’s emissions extremely seriously. This is why we jointly submitted plans to place a $2 levy on every tonne of ships’ fuel purchased. The amount was chosen to be acceptable to developing nations. We understand that climate change can only be tackled through truly international cooperation, something that is intrinsic to shipping
This proposal will create a $5bn R&D fund over a 10-year period and will boost the development of commercially viable zero-carbon emission ships by the early 2030s. This is the first major R&D initiative of its kind to be suggested by a sector on a global basis.
The purpose of the proposal is to accelerate the development of low-carbon and zero carbon technologies and fuels for use in the commercial maritime sector. The proposal does not aim to frustrate or delay the development of an MBM, and BIMCO believes that it could form the architecture of a future levy-based MBM for shipping, that would reduce the risk of market distortion.
For her part, Sadan Kaptanoglu, President & Chairperson of the Board of BIMCO, said that:
Industry-wide cooperation is absolutely essential if we are to meet the ambitious targets set by the IMO to halve CO2 emissions by 2050. We welcome the decision of our joint Membership to support our proposal to create a $5bn R&D fund for zero-emission shipping. We hope the IMO recognises the level of support for our proposal