{"id":522,"date":"2024-08-19T10:32:53","date_gmt":"2024-08-19T02:32:53","guid":{"rendered":"http:\/\/www.hajomech.com\/ics-proposes-ghg-pricing-mechanism-to-aid-net-zero-goals\/"},"modified":"2024-08-19T10:32:53","modified_gmt":"2024-08-19T02:32:53","slug":"ics-proposes-ghg-pricing-mechanism-to-aid-net-zero-goals","status":"publish","type":"post","link":"http:\/\/www.hajomech.com\/ics-proposes-ghg-pricing-mechanism-to-aid-net-zero-goals\/","title":{"rendered":"ICS proposes GHG pricing mechanism to aid net zero goals"},"content":{"rendered":"
\n

The International Chamber of Shipping (ICS) has presented a new <\/p>\n

proposal to ensure delivery of the target to achieve net zero GHG emissions from <\/p>\n

international shipping by or around 2050.<\/strong><\/p>\n

\"ICS<\/p>\n

At the heart of the proposal is a GHG Fee, charged to ships per tonne of <\/p>\n

CO2 equivalent (CO2e) emitted, combined with a \u201cfeebate\u201d mechanism to <\/p>\n

incentivise the accelerated production and uptake of zero\/near-zero GHG marine <\/p>\n

fuels, such as green ammonia, hydrogen and methanol, sustainable biofuels, and <\/p>\n

new technologies such as on-board carbon capture.<\/p>\n

<\/p>\n

While the principal purpose of the proposed maritime GHG pricing mechanism <\/p>\n

is to narrow the significant cost gap with conventional marine fuels, around <\/p>\n

$2.5 billion per year would also be allocated to an \u201cIMO Net Zero Shipping Fund\u201d <\/p>\n

to support maritime GHG reduction efforts in developing countries.<\/p>\n

<\/p>\n

According to the ICS, this will help to ensure that shipping\u2019s transition <\/p>\n

to net zero will be truly global and that green fuels will be available in all <\/p>\n

ports worldwide.<\/p>\n

<\/p>\n

The ICS does not take a specific view on the GHG Fee amount, as it depends <\/p>\n

on the agreed reward rate per tonne of GHG emissions prevented by ships. For the <\/p>\n

first five years, if the IMO sets the compensation rate at around $100 per tonne <\/p>\n

of CO2e prevented, a GHG Fee of approximately $60 per tonne of conventional fuel <\/p>\n

oil consumed by ships could be sufficient, said the organisation.<\/p>\n

<\/p>\n

The primary objective of the proposed IMO \u201cmechanism\u201d is to accelerate the <\/p>\n

production and uptake of new green marine fuels by reducing their cost <\/p>\n

disadvantage, with feebates (rewards) being disbursed to ships for the CO2e <\/p>\n

emissions prevented by not using conventional fuel oil.<\/p>\n

<\/p>\n

GHG fees will be collected, and feebates disbursed, via a web-based <\/p>\n

automated IMO \u201cmechanism\u201d, the prototype for which ICS has already developed and <\/p>\n

submitted to IMO.<\/p>\n

<\/p>\n

From the revenue generated from the GHG fee, an amount equivalent to 20 per <\/p>\n

cent of the revenue allocated to support the feebate programme will be <\/p>\n

transferred annually to the newly proposed IMO 2 Net Zero Shipping Fund, with <\/p>\n

this proportion subject to adjustment within five years of entry to force.<\/p>\n

<\/p>\n

The latest proposal from Bahamas, Liberia, with which the ICS is working, <\/p>\n

will be discussed at the next round of IMO negotiations, which resume in London <\/p>\n

on 23 September, to develop a new package of mid-term GHG reduction regulations <\/p>\n

for international shipping, for adoption by governments in 2025.<\/p>\n

<\/p>\n

ICS Secretary General, Guy Platten said: \u201cA GHG pricing mechanism using a <\/p>\n

flat rate GHG fee and a feebate element will be vital to bring about the rapid <\/p>\n

development and uptake of green marine fuels.<\/p>\n

<\/p>\n

\u201cTo incentivise the production and use of green marine fuels our proposal <\/p>\n

includes a carefully thought out feebate mechanism, which is fuel neutral, to <\/p>\n

incentivise prevention of up to 100 million tonnes of GHG emissions per year <\/p>\n

during the first five years.<\/p>\n

<\/p>\n

\u201cThis will help de-risk investment decisions and enable shipping to rapidly <\/p>\n

reach a \u201ctake-off\u201d point in the use of green marine fuels, something which is <\/p>\n

needed urgently as their current availability is virtually zero.<\/p>\n

<\/p>\n

\u201cIt is time for governments \u2018bite the bullet\u2019. Unless a distinct GHG <\/p>\n

pricing mechanism and feebate programme are included in the IMO regulations <\/p>\n

adopted next year, we genuinely fear that shipping\u2019s transition to net zero by <\/p>\n

or around 2050 will be unlikely to succeed.\u201d<\/p>\n

<\/p>\n

Earlier this summer, a green shipping conference in Belize City, Belize <\/p>\n

boosted the International Maritime Organization (IMO)\u2019s work to support <\/p>\n

Caribbean countries in decarbonising their maritime sector.<\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

The International Chamber of Shipping (ICS) has presented a new proposal to ensure delivery of the target to achieve net zero GHG emissions from international shipping by or around 2050.At the heart of the proposal is a GHG Fee, charged to ships per tonne of CO2 equivalent (CO2e) emitted, combine…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"hj_lang":[3],"class_list":["post-522","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/www.hajomech.com\/wp-json\/wp\/v2\/posts\/522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.hajomech.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.hajomech.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.hajomech.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.hajomech.com\/wp-json\/wp\/v2\/comments?post=522"}],"version-history":[{"count":0,"href":"http:\/\/www.hajomech.com\/wp-json\/wp\/v2\/posts\/522\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.hajomech.com\/wp-json\/wp\/v2\/media?parent=522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.hajomech.com\/wp-json\/wp\/v2\/categories?post=522"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.hajomech.com\/wp-json\/wp\/v2\/tags?post=522"},{"taxonomy":"hj_lang","embeddable":true,"href":"http:\/\/www.hajomech.com\/wp-json\/wp\/v2\/hj_lang?post=522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}