Industry Group Backs Global Carbon Price for Large Ships

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September 10, 2021

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by Frank Jordans (Associated Press) A major maritime industry association on Monday backed plans for a global surcharge on carbon emissions from shipping to help fund the sector’s shift toward climate-friendly fuels.

The International Chamber of Shipping said it’s proposing to the United Nations that all vessels trading globally above a certain size should pay a set amount per metric ton of carbon dioxide they emit.

Environmental groups welcomed the proposal to the the International Maritime Organization, a U.N. body, but cautioned that it doesn’t specify what carbon price would be supported by the group, which represents commercial shipowners and operators covering over 80% of the world merchant fleet.

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The Marshall Islands and the Solomon Islands, two nations with large shipping fleets whose territories are severely threatened by climate change, have suggested a carbon levy starting at $100 per ton.

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The group said it opposed piecemeal regional measures, such as those proposed by the European Union, and called for the money generated from the levy to go into a climate fund that would subsidize clean alternatives such as hydrogen until they come competitive with conventional fuels. READ MORE

Shipping industry group backs putting a price on carbon (CBS News)

International Chamber of Shipping sets out plans for global carbon levy to expedite industry decarbonisation (International Chamber of Shipping)

Excerpt from International Chamber of Shipping: ICS believes that a mandatory global levy based MBM is strongly preferable over any unilateral, regional application of MBMs to international shipping, such as that proposed by the European Commission which wishes to extend the EU Emissions Trading System to international shipping. A piecemeal approach to MBMs, (the EU ETS will only apply to about 7.5% of global shipping emissions), will ultimately fail to reduce global emissions from international shipping to the extent required by the Paris Agreement, whilst significantly complicating the conduct of maritime trade.

The levy based MBM, which is co-sponsored by the trade association for bulk carrier operators, INTERCARGO, comes in addition to an industry and government proposed $5bn R&D fund. The R&D fund, of a mandatory $2 levy per tonne on marine fuel, would be used entirely to fund the research and development of alternative zero-carbon fuels and propulsion systems. ICS has called for this fund to be approved at an upcoming pivotal meeting of the IMO in November this year.

Platten (Guy Platten, secretary-general of the International Chamber of Shipping) concluded: “The World Bank and numerous studies have concluded that the most appropriate global MBM for reducing carbon emissions from shipping is a levy-based system.

“Adopting our proposal for a levy-based system, will avoid the volatility that exists under emissions trading systems, such as the EU ETS – which in the case of shipping, seem to be more about generating revenue for governments from non-EU shipping, than helping shipping to decarbonise.

“A levy based system can give the industry price certainty, and more stability for making investment decisions in zero –carbon ships and developing emissions saving technology.” READ MORE

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