ICS denounces IMO’s rejection of its decarbonization fund proposal

The International Chamber of Shipping (ICS) has denounced the International Maritime Organization’s (IMOs) rejection of a research and development fund for decarbonisation projects across the shipping industry.

ICS deputy secretary general Simon Bennett said the fund would have provided $50 million per year to supporting maritime GHG reduction projects in developing countries, which is reportedly a ten-fold increase on the current IMO technical cooperation budget.

The ICS had earlier proposed the establishment of an International Maritime Research and Development Fund to accelerate the research, development and deployment of zero-carbon technologies and fuels.

The goal of the fund was to raise $5 billion via a mandatory R&D contribution of $2 per tonne of marine fuel consumed, to be paid by ships globally. The levy would have supported R&D programs aimed at decarbonising the sector.

In March this year, shipping industry representatives and supporting governments modified the proposal to allocate 10% of the fund to GHG reduction projects in developing economies, including small island states vulnerable to climate change.

However, a statement from ICS secretary general Guy Platten suggests the IMO’s Marine Environment Protection Committee has rejected the proposal.

A comprehensive regulatory proposal for the fund was pushed forward in 2020 by Denmark, Greece, Japan, Singapore, Georgia, Liberia, Malta, Nigeria, Palau and Switzerland.