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News Article

International Chamber of Shipping Looking to Tax Fuel

By Lorenzo Núñez | Mon, 09/20/2021 - 13:18

In an effort to reach a carbon neutral shipping industry, which accounts for 2 percent of global carbon emissions, the ICS submitted to the International Maritime Organization (IMO) a proposal for a Market Based Measure (MBM) in the form of a global fuel tax. The fee would consist in a mandatory contribution from merchant ships of more than 5,000 gross registered tons operating worldwide, for each ton of CO2 emitted.

The ICS, which represents more than 80 percent of the merchant fleet, presented a submission to the UN calling for an internationally accepted market-based measure to accelerate the uptake and deployment of zero-carbon fuels. The money collected as part of the tax would go into an ‘IMO Climate Fund’ which would be used to deploy the bunkering infrastructure required in ports throughout the world to supply fuels such as hydrogen and ammonia. This, in an effort to ensure consistency in the industry’s green transition for both developed and developing economies. The ICS also mentioned that the fund would be responsible for the climate contributions to be made by ships, in addition to collecting the contributions, and evidence based on fuel usage.

Guy Platten, secretary general of ICS “What shipping needs is a truly global market-based measure like this that will reduce the price gap between zero-carbon fuels and conventional fuels. There’s no question that improvements in technology can enable the transition to zero-emission shipping. However, huge leaps must still be taken if we are to achieve the readiness levels needed for deployment at scale. This includes building the necessary infrastructure to support such as transition. We need to be able to put zero emission ships in the water by 2030 without challenging price and safety issues,” said Guy Platten, secretary general of ICS.

Platten also added that the World Bank, alongside numerous studies on the matter have all determined that in order for a proper transformation to reduce carbon emissions, a levy-based system will be the best bet. “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”, he concluded.

The data used in this article was sourced from:  
MBN ICS
Photo by:   Free-Photos
Lorenzo Núñez Lorenzo Núñez Junior Journalist & Industry Analyst