MEPC 81: Environmental NGOs welcome growing consensus over the GHG levy

Several environmental NGOs have welcomed growing consensus among member states for the GHG levy at the IMO’s Marine Protection Environment Committee (MEPC 81) meeting this week.

PHOTO: IMO's MEPC meeting in London this week. IMO

Civil society environmental protection organisations like the Clean Shipping Coalition, Transport & Environment, Ocean Conservancy and Seas at Risk have welcomed the growing support for a GHG levy at the IMO.

John Maggs, Clean Shipping Coalition president, remarked that the MEPC81 had reaffirmed that member states support a GHG levy rather than weaker alternatives. He added that this action could further strengthen future policy measures.  

Faig Abbasov, Shipping Director, Transport & Environment, said this move would boost demand for alternative fuels, “The IMO negotiations this week achieved a near consensus to move ahead with a global fuel law that will create demand for green fuels.”

The NGOs have warned IMO member states to actively focus on other key issues to achieve the emission reduction targets in the 2023 GHG Reduction Strategy. Maggs said that despite the welcome move of the GHG levy, the IMO must “not lose sight” of key issues like agreeing on a globalGHG fuel standard (GFS)and improving the energy efficiency of ships through the Carbon Intensity Indicator (CII).

At a press conference held at the IMO headquarters earlier this week, Secretary-General Arsenio Dominguez told ENGINE that the timeline for the strategy’s mid-term measures, including the GHG levy, may be finalised by next year. “…So, adoption by next year, entering into force in 2027,” Dominguez said. 

The IMO tentatively expects adoption by 2025 and implementation by 2027. This is the earliest timeframe possible, as there needs to be a gap of 18 months between the adoption and implementation of these measures for them to be in accordance with international law.

A GHG levy has been a long-standing demand from NGOs and other institutions in a bid to decarbonise shipping. A recent report by the University Maritime Advisory Services (UMAS) revealed that all 27 member states sought the implementation of some form of GHG pricing mechanism as part of the IMO’s mid-term measures for its 2023 GHG Strategy.

By Manjula Nair

Please get in touch with comments or additional info to news@engine.online