Fortescue boss calls for $100/mtCO2e global GHG levy at the IMO – SEAISI

Australian mining giant Fortescue’s chairman Andrew Forrest has urged the IMO to implement a universal greenhouse gas (GHG) levy of $100/mtCO2-equivalent.

PHOTO: Fortescue's ammonia-capable vessel Green Pioneer in London. Fortescue

Forrest argues that such a levy could help bridge the price gap between conventional and alternative fuels and accelerate green ammonia adoption in shipping, the South East Asia Iron and Steel Institute (SEAISI) reported.

SEAISI is a Malaysia-based technical institute, supported by the UN.

Among IMO member states that have ratified MARPOL Annex VI, 61 out of 109 endorse a universal GHG levy as part of the IMO’s mid-term measures to decarbonise shipping. The proposed levy levels range from $18-150/mtCO2e and will be discussed at the IMO’s Marine Environment Protection Committee (MEPC 83) meeting in April.

Fortescue's Forrest has said that its iron ore customers would be willing to cover the additional premium of running vessels on low- and zero-carbon fuels if a levy was introduced, according to SEAISI.

“We will be paying it and billing it in the bill… Our customers will be so much happier,” SEAISI quoted Forrest as saying.

Forrest reportedly said this during the company’s London tour to showcase its ammonia-capable vessel Green Pioneer, which was docked in Canary Wharf in London. Before arriving in London, the vessel spent six days in the Port of Southampton, demonstrating its ability to power dual-fuel engines using ammonia.

“Fortescue is advocating for the early adoption of zero emission fuels such as green ammonia, widely accepted as the long-term solution, and the bypassing of transitional fuels such as biofuels and LNG,” the company noted on its website.

Forrest reinforced this stance during the Canary Wharf visit, stating, “There is no time to waste on so-called transition fuels.”

He also pledged to begin retrofitting all Fortescue vessels with ammonia-capable engines by 2030, SEAISI added.

By Konica Bhatt

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