ICS Flags Lack of Clarity on GHG Fuel Standard at IMO

IMO member states remain at odds over the proposed GHG fuel standard, leaving key details hanging in the balance. Image Credit: Ship & Bunker

The International Chamber of Shipping (ICS) has noted that last week's IMO intersessional meeting left key details of the proposed GHG intensity fuel standard unresolved, casting uncertainty on the future of the regulation.

ICS contends that its streamlined proposal for GHG surcharge fees—designed for ships unable to comply due to fuel availability constraints—remains on the table for consideration.

Some developing countries are backing this simpler, more transparent approach over a complex system that would force ships to trade compliance units with unpredictable and volatile pricing.

"Another key issue for shipowners is whether pooled compliance among different shipping companies will be permitted, given the expected limited availability of compliant marine fuels," ICS said in a statement on its website.

Member states convened in London last week to develop IMO's mid-term measures for GHG reductions. These measures are expected to include both a technical element, such as a global fuel standard, and an economic component, like a carbon levy.

These discussions come ahead of the key MEPC meeting in April, where these policies are expected to be finalised.

Meanwhile, growing support for a carbon levy has emerged among member states, though no breakthrough has yet been reached for a final agreement.

About three-quarters of IMO member states are backing the carbon levy, signalling strong global support for the measure. However, a small group of countries, including China and Brazil, continue to oppose the proposal.