ICS backs emissions pricing proposal to IMO

The International Chamber of Shipping (ICS) has proposed a greenhouse gas emissions pricing mechanism for shipping, outlined in a joint submission to the International Maritime Organization (IMO). The coalition has suggested amendments to the MARPOL convention that would require shipping companies to make contributions, per tonne of GHG emitted, to a so-called IMO GHG Strategy Implementation Fund.

The stated goal of the mandatory GHG charge is to reduce the cost gap between zero/near-zero GHG emission (ZNZ) fuels and conventional marine fuels to incentivise the uptake of alternative fuels such as green methanol, ammonia and hydrogen.

The revenue would be used to reward the production and uptake of ZNZ fuels and support the maritime GHG reduction efforts of developing countries.

The proposed MARPOL text was submitted to IMO’s intersessional working group for GHG emissions reductions, due to meet during the week commencing 17 February (ISWG-GHG 18).

All EU member states have backed the proposal, along with major flag states, namely the Bahamas, Liberia, Marshall Islands and Panama. Other countries in Africa and throughout the Caribbean and Pacific are also on the list, as are the ICS and European Commission.

ICS said if the MARPOL amendments are approved by IMO in April 2025, they should enter into force globally in early 2027, with the collection of annual GHG contributions from ships commencing in 2028.