A proposal has been submitted to the International Maritime Organization (IMO) for the adoption of a global mechanism to price greenhouse gas (GHG) emissions in international shipping, with the aim of accelerating the uptake of green fuels.
The proposal was put forward by the International Chamber of Shipping (ICS) and is supported by 47 countries.
According to an announcement by ICS, the joint regulatory text proposes amendments to the IMO’s MARPOL Convention, requiring shipping companies operating vessels in international trade to pay contributions for greenhouse gas emissions based on the amount of CO₂ equivalent (CO2e) emitted.
These contributions would be directed to a new IMO GHG Strategy Implementation Fund.
Key Milestones
The regulatory proposal will be examined during a crucial IMO meeting next month, specifically during the ISWG-GHG 18 session, scheduled for the week beginning 17 February 2025.
If the MARPOL amendments are approved by the IMO in April 2025, they are expected to enter into force globally at the beginning of 2027, while the collection of annual GHG contributions from ships would begin in 2028.
The joint text is supported by major maritime nations such as Greece, Japan, the Republic of Korea, and the United Kingdom, as well as by the largest flag states in the world, including Bahamas, Liberia, the Marshall Islands, and Panama.
Support also comes from all EU Member States, African countries such as Nigeria and Kenya, as well as small island developing states in the Caribbean and the Pacific.
Purpose of the Contribution Mechanism
The main objective of this mandatory GHG contribution would be to reduce the cost gap between conventional marine fuels and zero- or near-zero emission fuels, such as:
green methanol
ammonia
hydrogen
By narrowing this cost difference, the mechanism aims to create incentives for the faster adoption of cleaner energy sources in shipping.
The revenues generated would be used to reward the production and uptake of zero-emission fuels, while also providing billions of US dollars annually to support emission-reduction efforts in developing countries’ maritime sectors.
The Contribution Level
The exact level of the GHG contribution per tonne of CO2e has not yet been agreed by IMO Member States.
However, it is expected to range between USD 60 and USD 300 per tonne of conventional marine fuel consumed, depending on the level of financial incentives provided for the use of zero- or near-zero emission maritime fuels.
Funds collected would be distributed annually, including financial support to developing countries.
Industry Perspective
“The industry fully supports the adoption by the IMO of a global GHG emissions pricing mechanism for shipping. The joint text proposed by this broad coalition represents a realistic solution and the most effective way to incentivise a rapid energy transition in shipping, enabling the sector to meet the IMO’s agreed target of net-zero emissions by or around 2050,” said Guy Platten, Secretary General of the International Chamber of Shipping.
He also expressed satisfaction that a group of nations has supported a proposal largely based on ideas advocated by the ICS for more than a decade.
Countries Supporting the Proposal
The current list of supporters of the proposed MARPOL amendments submitted to the IMO includes:
Austria, Bahamas, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Fiji, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Jamaica, Japan, Kenya, Latvia, Liberia, Lithuania, Luxembourg, Malta, Marshall Islands, Montenegro, Netherlands, Nigeria, Palau, Panama, Poland, Portugal, Republic of Korea, Romania, Slovakia, Slovenia, Solomon Islands, Spain, Sweden, Seychelles, Tonga, Tuvalu, Ukraine, United Kingdom, Vanuatu, the European Commission, and the International Chamber of Shipping (ICS).
A Global Approach to Decarbonisation
The International Chamber of Shipping has long supported efforts to address greenhouse gas emissions in international shipping, recognising the urgency of accelerating the adoption of green fuels.
The proposed global emissions pricing mechanism is designed to ensure uniform implementation across the maritime sector, avoiding market distortions while maintaining fair competition among ship operators worldwide.
Funds raised through the mechanism would support research and development of alternative fuels and technologies, the development of necessary infrastructure, and assist developing countries in adapting to new maritime decarbonisation standards.
Source: Naftemporiki