Policy & Compliance
Will the IMO take the lead in introducing a global carbon levy?
A t the end of December 2024, 47 countries – including all EU member states – and the International Chamber of Shipping (ICS) issued a joint statement advocating the introduction of an annual greenhouse gas (GHG) levy per ship as part of the IMO maritime decarbonisation strategy. The joint submission sets out convergent regulatory text for amendments to the IMO MARPOL Convention – currently under negotiations as part of the implementation of the IMO strategy on reduction of GHG from ships – A mandatory greenhouse gas (GHG) charge has been proposed in order to reduce the cost gap between zero/ near-zero GHG emission fuels and conventional marine fuels “ BIFA’s Sustainable Logistics Policy Group has discussed such a proposal and it seems a logical approach to apply a global solution to such a problem which would require shipping companies operating ships on international voyages to make GHG contributions per tonne of CO 2 e emitted to a new ‘IMO GHG Strategy Implementation Fund’. The key purpose of this mandatory GHG charge would be to reduce the cost gap between zero/near-zero GHG emission fuels (such as green methanol, ammonia and hydrogen) and conventional marine fuels to incentivise the accelerated uptake of green energy sources. Supporting GHG reduction Revenue generated would be used to reward the production and uptake of such fuels, whilst also providing support to the maritime GHG reduction efforts of developing countries. The exact price of a tonne of CO 2 e emitted has not yet been agreed by IMO member states, but is expected to fall within a range
equivalent to between US$60 and up to US$300 per tonne of conventional marine fuel oil consumed, depending on the agreed reward rate for the use of zero/near-zero GHG marine fuels and the level of revenue to be allocated annually to support developing countries. Timetable This regulatory proposal will be considered by an IMO working group meeting in February. If the MARPOL amendments are approved by the 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. BIFA’s Sustainable Logistics Policy Group has discussed such a proposal and it seems a logical
approach to apply a global solution to such a problem.
February 2025 | 21
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