Six Pacific island nations have urged the IMO to retain a dedicated fund under its Net-Zero Framework (NZF), arguing that multipliers cannot replace direct financial rewards for cleaner marine fuels.
Fiji, Naoero, Palau, Solomon Islands, Tuvalu and Vanuatu outlined their position in a submission to the IMO’s Intersessional Working Group on Greenhouse Gas Emissions from Ships on October 12.
“The co-sponsors do not see the concept of a multiplier [proposed by China] as equivalent or in any way adequate substitute for a reward mechanism,” the submission said.
The IMO’s proposed Net-Zero Fund will collect revenue from greenhouse gas pricing contributions and distribute it to reward low-emission ships, support clean fuel research and infrastructure, and help developing countries manage the transition.
The six nations argued that direct monetary rewards for ships using zero- and near-zero-emission fuels and technologies would provide greater certainty for investment.
“This clarity is critical for the business case of the transition,” the submission said, adding that the current lack of certainty was holding back investment.
The countries also stressed the need to help developing economies meet the costs of decarbonisation, including through port infrastructure and technology development.
They called for the fund to become operational alongside the IMO’s technical and economic emissions measures, rather than being introduced later.
“A Fund/Facility is not just an ‘add-on’ to the transition,” the submission said. “It is the element which will drive the transition whilst ensuring that it is both just and equitable.”
China has proposed using multipliers to encourage the uptake of zero- and near-zero-emission fuels.
The approach would give eligible energy sources greater weight when calculating a ship’s greenhouse gas fuel intensity (GFI), potentially improving their compliance value.
