On 6 th September, the International Chamber of Shipping, which is immensely supported by the dry bulk association Intercargo, published the details of its global carbon taxation policy. The proposal details were basically revealed during the bid to set the November’s 77th gathering of the Marine Environment Protection Committee (MEPC).
This year MEPC 77 will be held in the same month and country as COP 26, the major yearly worldwide environmental discussion. Moreover, the EU is also looking to adopt its own rules for carbon trading on shipping.
It is considered that the proposal ICS put forward on taxation for global carbon emissions from ships is first for any industrial sector.
The levy would be based on mandatory, unspecified contributions by ships trading globally, exceeding 5’000 GT, for each ton of CO2 emitted. The funds would be put into an IMO Climate Fund, which would be used to close the price gap between zero-carbon and conventional fuels. The funds shall also be used for enhancing the supply for hydrogen and ammonia on global ports by building the necessary bunkering infrastructure.
According to ICS, “The carbon tax is designed to accelerate the development of a market that promotes profitable shipping with zero emissions”.