MEPC 82: INTERCARGO supports proposal for annual fee on GHG emissions

International Association of Dry Cargo Shipowners (Intercargo) has joined the International Chamber of Shipping, Bahamas and Liberia in proposing a flat-rate emission fee to the IMO.

PHOTO: COSCO's container ships docking at a port. COSCO

The proposal suggests that ships must give an annual "flat-rate" contribution called a greenhouse gas (GHG) fee for every mt of carbon dioxide-equivalent (mtCO2e) emitted by them for a period of at least five years from 2025.

The GHG fee contribution should be coupled with a feebate mechanism that rewards ships for reducing emissions on a well-to-wake basis by using zero- and near-zero fuels, the trade organisation said in a statement.

This could help the shipping sector accelerate the adoption of green bunker fuels, it added.

Intercargo advocates for “straightforward mid-term measures” and “simplicity in shipping decarbonization measures,” it said in the statement. Intercargo's members include global bulk and cargo shipping companies such as Aegean Bulk, Berge Bulk Shipping and K-Line Bulk Shipping.

The proposal is expected to be discussed at the IMO’s 82nd Marine Environment Protection Committee meeting (MEPC 82) next week.

By Konica Bhatt

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