Shipping industry proposes levy to make zero carbon a reality

The International Chamber of Shipping (ICS) and INTERCARGO have proposed the creation of a global levy on carbon emissions from ships. They said that this would help accelerate the industry’s efforts to go greener.

Global shipping, which as excluded from the 2015 MoU mainly because it was seen as too stick a problem, accounted for 2.87% of the world’s CO2 emissions last year.

The proposed levy would consist of mandatory contributions by ships trading globally that exceed 5,000gt, and would be applied for each tonne of CO2 emitted.

The money collected would go into a climate fund that would be used to deploy bunkering infrastructure in ports around the world to supply cleaner fuels, such as hydrogen and ammonia, the proposal states.

ICS Secretary General Guy Platten said that “what shipping needs is a truly global market-based measure like this that will reduce the price gap between zero-carbon fuels and conventional fuels”.

The proposal was submitted on Friday to the International Maritime Organization (IMO), which will have several meetings before the end of the year, including the main meeting in November.

The IMO will hold an intersessional working group meeting scheduled for late October, ahead of a late-November session of the Marine Environment Protection Committee, which will address issues including carbon-reduction efforts.

The EC in July had proposed adding shipping to the bloc’s carbon market, but the ICS said that “piecemeal” approaches such as the EU’s proposal would significantly complicate the conduct of maritime trade, without many benefits as a result.