International Shipping Coalition Aims for Net Zero Emissions by 2050 with GHG Pricing Proposal

The International Chamber of Shipping (ICS) has partnered with 47 governments to push for net zero greenhouse gas emissions from international shipping by 2050. This coalition has submitted a proposal to the UN International Maritime Organisation (IMO) for the adoption of a maritime GHG emissions pricing mechanism. Major shipping nations like Greece, Japan, South Korea, and the United Kingdom, as well as key flag states and the European Union, are among those supporting this initiative. The aim is to amend the IMO MARPOL Convention to require global shipping companies to make GHG contributions per tonne of emitted carbon dioxide to a new ‘IMO GHG Strategy Implementation Fund’.

The proposed GHG charge seeks to bridge the cost gap between zero/near-zero GHG emission fuels and conventional marine fuels, encouraging the uptake of green energy sources like green methanol, ammonia, and hydrogen. Revenue generated from this mechanism will support the production and adoption of these cleaner fuels while also providing financial assistance to developing countries for their maritime GHG reduction efforts. ICS Secretary General Guy Platten emphasized the industry’s full support for the adoption of a GHG pricing mechanism by IMO, calling the joint proposal a pragmatic solution to drive a rapid energy transition in shipping towards achieving the agreed net zero emissions goal by 2050.

The regulatory proposal, which will be discussed at a critical IMO meeting in February, aims to have the MARPOL amendments approved by April this year. If approved, these amendments would come into effect globally by early 2027, with the collection of annual GHG contributions from ships starting in 2028. Despite widespread support for a universal GHG contribution by ships, some governments still have concerns. The ICS and its partners are committed to addressing these concerns and working collaboratively with all IMO member states during the final negotiations to ensure the successful implementation of the proposed regulatory text.

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