Achieving Net Zero by 2050 Not in Shipowners' Hands: INTERCARGO

INTERCARGO Chairman, Dimitrios Fafalios. Image Credit: INTERCARGO

Dry bulk shipowners association INTERCARGO today said it supports the growing calls for net zero shipping emissions by 2050, but warned achieving the goal was not in shipowners' hands.

"Global challenges require global solutions and the commercial development of these solutions is within the control of other stakeholders rather than shipowners," said INTERCARGO Chairman, Dimitrios Fafalios.

"We must support the IMO and urge governments to adopt the necessary measures to accelerate R&D of zero-carbon technologies and expedite their deployment. The net-zero target will only be plausible if governments take the necessary action to achieve this. The place to do this is at the IMO."

Achieving net zero emissions by 2050 is a significant increase in ambition over IMO's official decarbonization strategy that currently calls for a 50% reduction in emissions by 2050. 

INTERCARGO also reiterated its call for a IMO Climate Fund to be created via a $2/mt levy on bunker fuel to help fund shipping's pathway to zero.

The formal submission of a paper on the proposal, co-sponsored with ICS, was made at last month’s IMO Intersessional Working Group on Reduction of Emissions from Ships.

“A levy-based market-based measure, with mandatory climate contributions by ships to an IMO Climate Fund, must be brought into effect quickly to accelerate the uptake and deployment of zero-carbon technologies and fuels,” Fafalios said.

“Good progress towards such medium-term measure was made at IMO’s Intersessional meeting, but this in itself is not enough. We must not jeopardise the 2050 target, and in the short term the approval of the industry proposal, also backed by INTERCARGO, for an International Maritime Research and Development Board (IMRB), in order to accelerate the R&D of zero-carbon technologies is an immediate priority.”