The issue of decarbonizing shipping in view of the meeting of the competent Committee of the International Maritime Organization (IMO), which is expected to approve a global mechanism for determining a price for greenhouse gas emissions from ships, is at the center of a meeting of the Working Group of the International Chamber of Shipping (ICS) with the Hellenic Shipowners Association.
The International Chamber of Shipping, with more than 47 states representing approximately 2/3 of the world’s tonnage, has already submitted a joint proposal, which may constitute a key pillar of the sought-after global agreement in the upcoming crucial negotiations at the IMO.
They jointly propose a text for the greenhouse gas emissions pricing mechanism for international shipping, while they came up with the text of the MARPOL convention for the annual contribution of ships, per ton of greenhouse gas emissions, to the International Maritime Organization (IMO) fund, amounting to several billion dollars.
The new joint proposal aims to achieve the net zero emissions target by reducing the price gap and providing incentives for the adoption of zero/near zero emission (ZNZ) marine fuels.
If appropriate regulations are adopted by IMO Member States in April 2025, the shipping GHG pricing mechanism should enter into force worldwide in early 2027.
The main purpose of this mandatory GHG charging will be to reduce the cost difference between zero/nearly zero GHG (ZNZ) fuels (such as green methanol, ammonia and hydrogen) and conventional marine fuels, in order to incentivise the faster adoption of green energy sources.
The resulting revenues will be used to reward the production and adoption of alternative fuels, while also providing billions of US dollars annually to support developing countries’ shipping efforts to reduce greenhouse gas emissions.
