ICS Focus on Green Fuels for 2050 Net Zero Strategy
Fund and Reward: using financial incentives to beat the clock. File Image / Pixabay.
Shipping's International Maritime Organisation 2050 net zero carbon goals could be met by a Fund and Reward scheme that puts green fuels centre stage, according to the International Chamber of Shipping.
ICS said that such a mechanism would be financed by "a mandatory contribution by ships per tonne of CO2 emitted" where contributions would be fed into an IMO fund.
"First movers for CO2 emissions prevented by the use of alternative fuels such as methanol, ammonia and hydrogen as well as sustainable biofuels and synthetic fuels plus new technologies incudling carbon capture" would be rewarded under the scheme.
ICS deputy general secretary Simon Bennett said that ICS wanted to see "some kind of levy-based global economic measure prioritised for rapid finalisation by the IMO Marine Environment Protection Committee at its next meeting in July".
Funds could also go towards facilitating alternative marine fuel production in developing countries and reducing the risks associating with developing the necessary bunkering infrastructure needed for the adoption of the new fuels, ICS said.
The level of contributions to the IMO fund will be decided by governments. However, ICS has suggested that total funds of about $10 billion a year – with contributions set at around $50 per tonne of marine fuel oil consumed – would be sufficient to fund a rewards programme up until 2030.