ICS says it is encouraged by the EU's provisional decision to leave shipping out of the ETS. File Image / Pixabay
International Chamber of Shipping (ICS) Director of Policy, Simon Bennett, speaking at the United Nations (UN) COP 23 in Bonn, said the provisional decision by the European Union (EU) not to include shipping within the full scope of the regional EU Emissions Trading System (ETS) demonstrates confidence in the International Maritime Organization (IMO) to take appropriate action to deliver CO2 reduction measures within the shipping industry.
"We understand that the date which the EU has agreed for when the European Commission will next closely examine the progress that has been made globally is consistent with those time lines agreed by all IMO Member States," said Bennett.
Simon Bennett, Director of Policy, ICS
A global fuel levy would clearly be the preference... should an MBM ever be imposed on them
Noting that the industry does not support the concept of Market Based Measures (MBM), Bennett said that "in the event that, as part of the IMO strategy, MBMs are included as a possible candidate measure, today's EU decision does at least make it more likely that the type of MBM that might be explored would be a global fuel levy.
"And compared to the nightmare of a regional ETS, a global fuel levy would clearly be the preference of the vast majority of shipowners should an MBM ever be imposed on them."
Earlier this month, ICS highlighted its vision for zero carbon shipping future, which it said may be achieved through the use of batteries or fuel cells with renewable energy sources, or other new technologies, such as hydrogen.