How much closer are we to IMO GHG reduction
regulations that include putting a price on ships’ GHG emissions? Following a
week of discussions by an IMO working group, Guy Platten, secretary general of the International Chamber of
Shipping (ICS), emphasized the need for urgent progress ahead of the critical
IMO Marine Environment Protection Committee (MEPC 83) session in April.“While ICS is broadly satisfied with the
progress made on a radical new package of global GHG reduction regulations,
including a GHG emissions pricing mechanism, much work urgently remains to be
done,” he said. “But despite divergence on many issues, it is encouraging that
negotiations continue in a positive and cooperative spirit.” “With only six
weeks remaining before the MEPC in April , we remain confident that IMO Member
States be able to seal the deal and approve fit for purpose amendments to the
MARPOL Convention.
ICS says that no major breakthrough was reached
towards a final agreement about a universal levy on ships’ GHG emissions, which
is widely supported by the shipping industry as the best mechanism to
accelerate the transition to net-zero emissions by 2050.
“Encouragingly,” says ICS, “about three quarters of IMO states now
strongly support the GHG contribution system proposed by the ’50-plus group’ of governments and
ICS. However, concerns raised by a significant minority, including China and
Brazil, must be addressed in a simple and pragmatic way to build complete
consensus.”
“A major positive outcome is the
broad agreement among governments to establish an IMO Fund, a concept ICS has
long championed,” says ICS. “It has also been
generally agreed that this IMO Fund, expected to generate billions of U.S.
dollars annually from charges for ship’s GHG emissions, should be used to
provide financial rewards for first movers and ships using ZNZ [zero and near
zero] fuels (such as green methanol, biomethane, green ammonia, and sustainable
biofuels). These incentives are crucial for narrowing the cost gap with
conventional marine fuels and catalysing the production and uptake of new
fuels... “Importantly,” says ICS, “we have seen widespread support from
developing countries for this more simple and transparent approach instead of
an overly complex system requiring ships to trade compliance units with
unpredictable and volatile pricing.
Another key issue for shipowners is whether pooled compliance among different
shipping companies will be permitted, given the expected limited availability
of compliant marine fuels.”
“To ensure progress, ICS will continue to put
forward pragmatic and constructive proposals to bridge differences,
particularly on the crucial issue of economic incentives for the use of ZNZ
fuels,” Platten said. “Achieving
consensus is crucial for delivering the goals of the revised GHG Reduction
Strategy, which were unanimously agreed by all governments in 2023.