$2/mt Bunker Levy Plan to be Given Further Consideration by IMO

by Ship & Bunker News Team
Monday November 23, 2020

A proposal to place a $2/mt levy on marine fuel consumed to help finance industry decarbonization efforts will be given further consideration by IMO.

The idea was discussed as part of this week's 75th session of IMO's Marine Environment Protection Committee (MEPC 75).

The levy will be used to generate a $5 billion fund over 10 years, to be conducted by a new International Maritime Research and Development Board (IMRB), that will accelerate the introduction of zero-emission technologies for maritime transport.

The idea has been put forward by shipowner associations that who collectively represent over 90% of the world merchant fleet.

BIMCO and the International Chamber of Shipping ICS) were among those who Friday welcomed IMO's decision to give further consideration to their proposal.

"The IMO 2050 climate targets can only be achieved with the immediate acceleration of zero-carbon fuels and technologies. The IMRB is a crucial vehicle for driving the progress needed to build a zero-carbon shipping industry, and the necessary funding can only be provided within the global regulatory framework of IMO," ICS said as part of a collective statement.

"The industry recognises the unprecedented nature of its proposal and the associated complexities, and will work to address this so that governments can take forward its offer of USD 5 billion of funding to accelerate R&D, to ensure the technological innovation necessary to make the required zero-carbon transition within the IMO 2050 time line."

Ship & Bunker News Team
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