ICS Moves to Put Levy on Ship Emissions from 2025

ICS deputy general secretary Simon Bennett. Image Credit: ICS

Simon Bennett, Deputy Secretary General of the International Chamber of Shipping (ICS), believes it is vital a levy is placed on ship's GHG emissions if the industry is to meet its revised GHG targets.

As Ship & Bunker previously reported, on Friday as part of the 80th meeting of IMO's Marine Environment Protection Committee (MEPC 80) in London, new targets GHG targets agreed include GHG emissions reductions of at least 20% by 2030, 70% by 2040, and reaching net zero 'by or around 2050'.

ICS hopes a GHG levy can be put in place in 2025, although IMO process dictates such a levy implemented through its channels could not come into effect until at least 2027.

In comments made at the close of last week's sessions, Bennett said adoption of the new targets sends a "very strong signal to ... energy producers who must now urgently supply zero GHG marine fuels in very large quantities if such a rapid transition is to be possible."

"The checkpoints agreed for 2030 and 2040 are particularly ambitious. The industry will do everything possible to achieve these goals," he added.

"But this can only be achieved if IMO rapidly agrees to a global levy on ships' GHG emissions to support a 'fund and reward' mechanism, as proposed by the industry."

A previously discussed in these pages, ICS has already put forward its levy proposal, a "Fund and Reward" scheme financed by "a mandatory contribution by ships per tonne of CO2 emitted" where contributions would be fed into an IMO fund.

While the cost of the contributions to the IMO fund would be decided by governments, ICS has suggested contributions set at around $50 per tonne of marine fuel oil consumed will be necessary.

While such a levy is not universally accepted - a delegate from Argentina last week being among those at MEPC 80 expressing opposition to the idea - Bennett says it is now supported by the majority of governments.

"The ICS 'fund and reward' proposal remains firmly on the table as a deliverable solution and will now be subject to a comprehensive impact assessment by UNCTAD to be completed by early next year, so that an economic measure can be adopted in 2025," he added Friday.

"This will be vital it we are to reach a take-off point by 2030 for the use of new fuels to achieve the extremally ambitious goal which IMO has now set for 2040.

"2040 is less than 17 years away and the availability of zero GHG marine fuels today is virtually zero."