ICS and IBIA suggest energy pooling mechanism for global GHG fuel standard

The International Chamber of Shipping (ICS) and the International Bunker Industry Association (IBIA) have proposed inclusion of "energy pooling compliance mechanism" in the IMO's global GHG (greenhouse gases) fuel standard.

PHOTO: Container ship sailing at sea. Getty Images

The duo has submitted a joint proposal to the International Maritime Organization, calling it a "simplified proposal" for the global GHG fuel standard.

The 2023 IMO strategy aims to reduce GHG emissions from ships. As part of this strategy, mid-term measures will be developed and finalised, including a marine fuel standard that regulates the phased reduction of the fuels' GHG intensity. The target is to generate between 5% and 10% of shipping energy from zero or near-zero energy sources by 2030.

To reduce greenhouse gas emissions from shipping, a new set of regulations is being proposed for adoption in 2025. The regulations would aim to gradually decrease the greenhouse gas intensity of bunker fuels and create a market to produce fuels that have zero or near-zero greenhouse gas emissions to help achieve the IMO’s net zero GHG emissions target by 2050.

Meanwhile, the proposed voluntary energy pooling mechanism will address the possibility of fuel producers not being able to provide enough quantities of low emission fuels.

"This will allow for ships to continue to trade should sufficient quantities of fuels of the required GHG intensity not be made available by energy producers, but without increasing the sector’s total GHG emissions," ICS and IBIA said in a joint statement.

This will also reduce administrative procedures, the duo said.

“The proposed method of pooled compliance would be a private arrangement between shipping companies and would avoid unnecessary administrative burden for governments, including developing countries’ administrations whose support will be vital to move forward at IMO,” ICS deputy secretary general Simon Bennett said.

The design of the global fuel standard should be kept simple "that can be uniformly and consistently implemented and that keeps the administrative burden for bunker operators and suppliers to a minimum," IBIA’s IMO representative Edmund Hughes said.

The proposal will be considered by an IMO intersessional working group on GHG reduction in March next year, ICS and IBIA stated.

By Debarati Bhattacharjee

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