Call for Levy-Based GHG Pricing to Decarbonize Shipping Ahead of IMO Discussions

ICS Pushes Levy-Based System Ahead Of IMO Meeting
Guy Platten, Secretary General of the International Chamber of Shipping, advocates for a levy-based GHG pricing mechanism to promote the use of green energy sources in the shipping industry. The proposal, supported by 51 co-sponsors, aims to bridge the cost gap between conventional and green fuels to achieve net zero targets.
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Guy Platten, Secretary General of the International Chamber of Shipping, has called for a levy-based GHG pricing mechanism ahead of the UN IMO Intersessional Working Group on Reduction of GHG Emissions from Ships. The purpose of this mandatory GHG charge is to bridge the cost gap between conventional marine fuels and zero/near-zero GHG emission fuels, such as green methanol and green ammonia, to encourage the uptake of green energy sources.

A joint submission by 51 co-sponsors, including the European Commission and ICS, supports the levy-based GHG pricing mechanism. This proposal involves ships making annual contributions per tonne of CO2 equivalent emitted to an IMO GHG Strategy Implementation Fund. Platten emphasized the importance of a global solution to meet net zero targets and highlighted the need for a simple, transparent, and equitable system for decarbonizing shipping.

The joint submission by governments and ICS outlines regulatory text for amendments to the IMO MARPOL Convention, which will require shipping companies to make GHG contributions per tonne of CO2e emitted to a new IMO GHG Strategy Implementation Fund. These amendments are set to be discussed at the IMO Marine Environment Protection Committee (MEPC 83) in April. The shipping industry is pushing for a swift implementation of the levy proposal, supported by governments responsible for a large majority of the world’s shipping tonnage, to accelerate the decarbonization of shipping.

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