ICS acknowledges questions about GHG emissions pricing mechanism
NewsThe ICS acknowledges strong support for a universal GHG contribution but recognizes concerns from countries like China and Brazil on emissions pricing.
WSC following MEPC 81: “Fuel standard must be carefully tailored to align with emission targets”
“It is essential that the work on technical and financial measures is undertaken with a clear focus on how they will deliver on our target of decarbonization.”
World Shipping Council (WSC) today released a statement following the IMO Marine Environment Protection Committee (MEPC), 81st session. MEPC 81 meets at IMO Headquarters in London from 18-22 March 2024.
Amongst other key agenda items, MEPC 81 discusses the implementation of the 2023 IMO GHG Strategy.
PREVIEW: Marine Environment Protection Committee (MEPC 81), 18-22 March 2024
The MEPC meeting is preceded by the 16th meeting of the Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 16), from 11-15 March 2024.
“Meaningful change rather than locking in interim solutions”
WSC states: “Over the past two weeks, IMO member states and organisations have collaborated to align and organise the work towards mid-term measures to decarbonise the shipping industry. MEPC 81 was an important opportunity for all parties to review and discuss the many proposals on the table. The MEPC has agreed on a framework for the mid-term measures including a fuel standard and an economic measure, as well as set up the necessary expert groups, laying the foundation for an agreement that will deliver on the target of net-zero by 2050.
The WSC Green Balance Mechanism, an innovative approach to GHG pricing designed to bridge the price gap between fossil fuels and green fuels, has been very positively received. The constructive input received both at the intersessional and MEPC meetings is invaluable as we further develop the mechanism.
As we all prepare for the MEPC 82 meeting in September, it is essential that the work on technical and financial measures is undertaken with a clear focus on how they will deliver on our shared target of decarbonization.
A fuel standard must be carefully tailored to align with emission targets using a full lifecycle perspective, providing a clear pathway to ensure it drives meaningful change rather than locking in interim solutions.
A financial measure, or GHG pricing mechanism, needs to bridge the price gap between fossil fuels and green fuels to enable their use in the world’s fleet and incentivize investment in green fuel production.
Renewable fuel plants will only be built by energy providers if there is a clear demand for green fuels, and simply narrowing the price gap will not be enough to create a viable market.
We look forward to the MEPC 82 in September and are eager to progress the development of a fuel standard and a financial measure, ensuring that regulations are approved as scheduled in 2025, with implementation slated for 2027.”
About MEPC
The Marine Environment Protection Committee (MEPC) addresses environmental issues under IMO’s remit. This includes the control and prevention of ship-source pollution covered by the MARPOL treaty, including oil, chemicals carried in bulk, sewage, garbage and emissions from ships, including air pollutants and greenhouse gas emissions.
Other matters covered include ballast water management, anti-fouling systems, ship recycling, pollution preparedness and response, and identification of special areas and particularly sensitive sea areas.