The International Chamber of Shipping (ICS) has teamed up with 47 governments to propose a maritime greenhouse gas (GHG) emissions pricing mechanism for international shipping. This joint submission to the United Nations’ International Maritime Organization (IMO) aims to address the environmental impact of shipping by introducing GHG contributions per tonne of CO2e emitted. The proposal is backed by major shipping nations, flag states, EU states, African countries, and Small Island Developing States.
The key purpose of the proposed GHG charge is to bridge the cost gap between zero/near-zero GHG emission fuels and conventional marine fuels. By incentivizing the uptake of green energy sources like green methanol, ammonia, and hydrogen, the charge aims to accelerate the transition towards sustainable shipping practices. Revenue generated from the GHG contributions will support the production and adoption of zero/near-zero GHG fuels, as well as fund maritime GHG reduction efforts in developing countries.
The proposed regulatory text, which is set to be considered at a crucial IMO meeting in February 2025, outlines amendments to the IMO MARPOL Convention. If approved in April 2025, the amendments would come into effect globally in early 2027, with the collection of annual GHG contributions from ships starting in 2028. The European Union has already implemented a carbon levy mechanism for shipping through the EU Emissions Trading System, setting an annual limit on emissions and requiring the purchase of allowances for emissions from large ships entering EU ports.
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