Trafigura proposed to IMO, a carbon levy of $250-$300 per tonne of carbon-dioxide (CO2) equivalent on shipping fuels, in order to make zero and low carbon fuels economically viable and competitive.
In fact, the company stated:
We believe that only through the introduction of a significant levy on carbon-intensive fuels can sufficient progress be made towards the decarbonisation of the global shipping industry.
What is more, Trafigura considers that the levy would be used to subsidise and incentivise low and zero carbon fuels, funding the research and development of alternative fuels and, in part, developing countries with the energy transition to mitigate the impact of climate change.
It is now time to put a price on carbon emissions in the shipping industry in the form of a global, mandatory industry levy.
…the company added.
Trafigura, which is responsible for more than 4.000 ship voyages annually, acknowledged that a carbon will have an immediate effect on shipping costs which companies would bear.
This increase in operational costs will spur charterers to change behaviour to reduce emissions, charter more efficient ships and switch to lower carbon fuels.