[ad_1]
Guy Platten called on the IMO to bring forward plans to establish a dedicated shipping fund (Source: British Chamber of Shipping website)
February 6, 2024From Riviera News
The International Chamber of Shipping (ICS) has submitted a detailed proposal to IMO to establish a Zero Emission Shipping Fund (ZESF).
Industry recognizes the urgency to advance viable solutions to reduce greenhouse gas (GHG) emissions and achieve IMO’s long-term goal of achieving net zero targets . By all estimates, the cost of updating the world’s commercial fleet to meet decarbonization goals will run into the trillions of dollars.
This latest proposal is a joint proposal by the governments of the Bahamas and Liberia, the world’s largest flag states measured by gross tonnage, and is based on the “febate” concept proposed by the Japanese government with support from EU countries at the IMO. . For a flat-rate “levy-based” global contribution system.
Under this proposal, contributions from ships per tonne of CO2 emissions would be used to reduce the significant cost difference between GHG-free fuels and conventional fuel oil, and the use of these new marine fuels would It specifies that ships will be provided with a financial reward or feebate for the GHG emissions prevented.
The world’s shipowners have now agreed to make compulsory contributions to a fund that will raise billions of dollars each year to finance and accelerate the transition and support developing countries’ efforts to reduce ocean greenhouse gases. .
This includes supporting zero or near-zero marine fuel production, deploying new fuel supply infrastructure in ports in developing countries, and supporting training on the safe use of new fuels.
ICS Secretary-General Guy Platten stressed the urgent need to develop an agreed plan, saying: “The 2050 target is the first step that government negotiators must now take to ensure the necessary regulations to establish a Zero Emissions Shipping Fund.” Relevance will only be maintained if we put all our efforts into formulating this.” Next year, we urgently need to agree on a global greenhouse gas pricing mechanism for shipping, which will put at risk investment in greenhouse gas-free marine fuels and help developing countries. Billions of dollars in funding will be provided. ”
“We are less than six years away from the first IMO target of 2030. If we do not achieve a take-off point for GHG-free marine fuel production and absorption by 2030, how will we achieve net zero by 2050? I can’t see if I will.”
The fund proposal and feebate structure will be considered by IMO member states at the next round of negotiations in March. Governments have already unanimously committed to developing a greenhouse gas pricing mechanism for international shipping by 2025. If governments agree, ZESF will be approved next year.
ICS relied on a detailed impact assessment conducted on its behalf by Clarksons Research, which found that contribution rates that add costs ranging from $20 to $300 per tonne of fuel oil consumed It is emphasized that there will be no undue negative impact on the national economy of each country. Terms and conditions regarding the price of delivered cargo.
The association believes that achieving the IMO’s target of sourcing 5-10% of the energy used in shipping from zero or near-zero greenhouse gas sources by 2030 will require a significant increase in costs compared to conventional fuel oil. We estimate that the cost of reducing the gap and accelerating the spread of alternative fuels will be commensurate. Fuel will cost US$5 billion to US$10 billion a year. Shipping is recognized as a difficult sector to reduce, as it is completely dependent on fossil fuels and the current use of zero-emission fuels is virtually zero.
Platten concludes: All that is needed is the political will from governments to implement this fit-for-purpose solution quickly and effectively. ”
The full proposal can be accessed here.
[ad_2]
Source link
