New ICS proposal would reward first movers using low-emission fuels

THE International Chamber of Shipping (ICS) represents 80 per cent of the world's commercial ships and proposes a global carbon emissions fund to reward first movers using low-emission fuels, reports Ventura, California's gCaptain.

The ICS declared the system will help to catalyze the adoption of more expensive low and net-zero emission fuels by financially rewarding ships and energy producers that invest in them.

It aims to ensure five per cent of energy used by shipping globally is produced from alternative fuels by 2030.

The ICS has submitted the plan to the UN's International Maritime Organisation (IMO) for consideration.

The fund and reward (F&R) proposal combines various government GHG reduction proposals, a flat rate contribution system, and ideas for a global IMO measure by the 27 European Union countries.

"With the ICS fund and reward proposal, IMO member states have a new but very short window of opportunity to put in place a global economic measure which can kick start the development and production of alternative fuels for shipping," said ICS chairman Emanuele Grimaldi.

"To achieve net zero mid-century, these new fuels must start to become available in significant quantities on a commercial basis no later than about 2030."

The system would be financed by mandatory flat rate contribution by ships per tonne of CO2 emitted.

"Compromise is always difficult but in any negotiation, having a proposal like this can enable everyone to come together," said Mr Grimaldi.

"I hope this proposal will act as a bridge between the climate ambitions of both developed and developing countries so that no part of the global shipping industry will be left behind."

Said ICS secretary general Guy Platten: "We must narrow the significant price gap of new, very expensive, alternative fuels to accelerate their production and take-up so that we reach a take-off point by 2030 on our pathway to net zero by 2050,"

"But it is crucial that our industry also supports maritime greenhouse gas reduction efforts in developing countries."