MEPC 83: Higher universal levy still within reach - Opportunity Green

A higher-priced universal GHG levy is still achievable at the IMO, Opportunity Green’s senior director of climate diplomacy Emma Fenton told ENGINE.

IMAGE: IMO headquarters in London. Getty Images

“… a high ambition measure – as supported the many Africa, Caribbean, Pacific and Central American States – is very much still achievable, but it is vitally important nations hold their nerve and continue to support a just and equitable outcome,” Fenton said.

Fenton’s comment follows a separate confirmation from the Micronesian Center for Sustainable Transport that support for a universal greenhouse gas (GHG) levy remained strong at the IMO’s MEPC 83 meeting in London this week.

IMO member states are debating whether to implement a GHG levy as a flat-rate contribution as an economic measure to reach its 2050 net zero emission strategy. The levy levels proposed vary widely, from a low of $18.75/mtCO2-equivalent, via $100/mtCO2e, to a high of $150/mtCO2e.

Meanwhile, a source told ENGINE that member states are negotiating a potential compromise that could combine a global fuel standard (GFS) with a GHG levy.

A GFS would require vessels to meet annual GHG intensity limits based on energy use.

According to Lloyd's Register, the Chair of the IMO’s GHG Working Group presented a “compromise text” of draft amendment to MARPOL Annex VI.

The draft text removed the GHG levy as a flat-rate contribution and suggested another compliance mechanism instead. This mechanism would require vessels to reduce their fleets' GHG energy intensities in line with regulatory targets through to 2050, or balance shortfalls via “two tiers of deficiency.”

Member states are expected to finalise the details of the mid-term measures by the end of MEPC 83 tomorrow.

By Konica Bhatt

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