ICS Sees Growing Support from Member States for Carbon Levy at IMO

The ICS argues that a carbon levy provides the best means of shipping decarbonisation.

The International Chamber of Shipping (ICS) has argued that a carbon levy is the optimal solution for shipping's decarbonisation, with the idea gaining support from major member states that oversee a large share of the world's shipping tonnage.

The International Maritime Organization (IMO) is convening an intersessional working group meeting this week to discuss and negotiate the IMO's mid-term measures for GHG reductions, which may include a technical element like a global fuel standard and an economic component such as a carbon levy.

These discussions are vital as they will set the stage for the approval of the IMO's mid-term measures during the 83rd Marine Environment Protection Committee (MEPC 83) meeting in April, ultimately paving the way for formal adoption in October 2025.

"We are encouraged that there are now 51 co-sponsors, including the European Commission and ICS, of a joint submission which sets out fit for purpose text in support of a levy-based GHG pricing mechanism, with ships making annual contributions per tonne of CO2 equivalent emitted to a proposed IMO GHG Strategy Implementation Fund," Guy Platten, secretary general at ICS, said in an emailed statement on Friday.

He sees clear evidence of growing support among IMO member states for a levy-based funding and reward mechanism, alongside an IMO fuel standard.

A report by the UCL Energy Institute's Shipping and Oceans Research, released last week, highlighted that nations representing 70% of global shipping tonnage are rallying behind a global fuel standard and carbon levy.

This week will feature some challenging discussions, as some Member States are not yet fully ready to commit.

Platten stated that this week's meeting will involve challenging discussions, as some Member States are not yet fully prepared to commit. However, the reality is that a global solution is the only path to meeting shipping's net-zero targets.

"We believe that the levy proposal, that is now supported by governments responsible for a large majority of the world's shipping tonnage, as well as by the global shipping industry, provides the best and most pragmatic means of decarbonising shipping at speed and scale, Platten asserts.

"The shipping industry wants a simple, transparent and equitable system that can be put in place quickly and efficiently."