The International Chamber of Shipping (ICS) has submitted a proposal to the IMO for the adoption of a common pricing mechanism for gas emissions in international shipping, in order to accelerate the adoption of green fuels, with a proposal from 47 countries.
According to an ICS announcement, the common regulatory text for amendments to the IMO MARPOL Convention requires shipping companies operating ships on international voyages to pay greenhouse gas contributions per tonne of CO2e emitted to a new IMO Greenhouse Gas Strategy Implementation Fund.
Dates-Milestones
The regulatory proposal will be considered at a crucial IMO meeting next month (17 February 2025 at ISWG-GHG 18).
If the MARPOL amendments are adopted by IMO in April 2025, they should enter into force globally in early 2027, with the collection of annual greenhouse gas contributions from ships starting in 2028.
The joint text is supported by major shipping states such as Greece, Japan, Korea and the United Kingdom, the world’s largest flag states such as the Bahamas, Liberia, the Marshall Islands and Panama, all EU states, African countries such as Nigeria and Kenya, as well as small developing island states in the Caribbean and the Pacific.
The main purpose of this mandatory greenhouse gas levy will be to reduce the cost difference between zero/near-zero greenhouse gas emission fuels (such as green methanol, ammonia and hydrogen) and conventional marine fuels, in order to offer incentives for the faster adoption of green energy sources in shipping. The revenue generated will be used to reward the production and adoption of zero-emission fuels, while also providing billions of US dollars annually to support shipping efforts to reduce greenhouse gas emissions in developing countries.
Contribution
The amount of the greenhouse gas levy per tonne of CO2e emitted has not yet been agreed by IMO Member States, but is expected to range between US$60 and US$300 per tonne of conventional marine fuel oil consumed, depending on the agreed rate of reward for the use of zero- or near-zero-emission marine fuels, with the proceeds earmarked annually to support developing countries.
“The industry fully supports the adoption by IMO of a greenhouse gas pricing mechanism for global application in shipping. The joint text proposed by this broad coalition is a realistic solution and the most effective way to incentivize a rapid energy transition in shipping to achieve the agreed IMO goal of net zero emissions by 2050 or close to it,” said Guy Platten, Secretary General of the International Chamber of Shipping. He also welcomed the support from a group of nations for the proposal, which is broadly based on ideas that ICS has been advocating for over the past decade.
List of supporters
The current list of supporters of the proposed MARPOL text was submitted to IMO by: Austria, Bahamas, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Fiji, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Jamaica, Japan, Kenya, Latvia, Liberia, Lithuania, Luxembourg, Malta, Marshall Islands, Montenegro, Netherlands, Nigeria, Palau, Panama, Poland, Portugal, Republic of Korea, Romania, Slovakia, Slovenia, Solomon Islands, Spain, Sweden, Seychelles, Tonga, Tuvalu, Ukraine, United Kingdom, Vanuatu, European Commission and ICS.
