The International Chamber of Shipping (ICS) presents a collaborative proposal with the Commonwealth of The Bahamas and the Republic of Liberia to the United Nations International Maritime Organization (IMO) for the establishment of a Zero Emission Shipping Fund (ZESF).
Accelerating the Transition to Net Zero by 2050
The proposal aims to expedite the shipping sector’s transition to net-zero emissions by the year 2050. ICS emphasizes the necessity of global cooperation for the success of the transition to net-zero shipping.
Secretary General Guy Platten underscores the urgency of establishing a global greenhouse gas (GHG) pricing mechanism to facilitate investment in zero GHG marine fuels and support developing countries in the transition.
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Government Commitment to Maritime GHG Emissions Pricing
Governments are urged to fulfill their commitment to adopt a maritime GHG emissions pricing mechanism by 2025. The ZESF proposal is scheduled for discussion among IMO member states during the upcoming GHG negotiations in March.
If approved, the ZESF will play a crucial role in achieving net-zero GHG emissions from shipping by or near 2050, aligning with IMO member states’ GHG reduction targets.
Feebate System for Financial Incentives
The proposal outlines a feebate system whereby contributions from ships per tonne of CO2 emitted would financially incentivize the use of new marine fuels, bridging the cost gap between zero GHG fuels and conventional fuel oil.
The ZESF includes provisions for supporting the production of zero/near-zero marine fuels and the development of bunkering infrastructure in ports worldwide, particularly in developing countries.
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Impact Assessment Findings
An impact assessment conducted by Clarksons Research for ICS reveals that proposed contribution rates would not disproportionately affect national economies in terms of delivered cargo prices.
ICS, as a global trade association representing merchant shipowners and operators, is spearheading this initiative to drive sustainable practices within the shipping industry.