WSC statement ahead of MEPC 83
The International Maritime Organization (IMO) is on the cusp of striking the world’s first global carbon pricing deal for any industry. “If that happens, it’ll be a major milestone for climate policy and a turning point for shipping,” said World Shipping Council President & CEO Joe Kramek.
To succeed, the measure must help bridge the price gap between fossil fuels and cleaner alternatives, including zero and near-zero (ZNZ) fuels. That’s essential to drive investment in green energy and fuel supply, and to build the economies of scale needed to reduce cost over time.
However, key elements of the agreement remain to be resolved – which will determine how effective the agreement will be in delivering a regulatory regime that enables an energy transition in the global fleet.
Pictured: Some of WSC’s team present at the IMO for MEPC83
From left to right: Bryan Wood-Thomas (WSC Director Environment and Climate), Wei-Jun Mun (Director Asia Pacific Public Policy), Jim Corbett (Director Environment, Europe)
“A key issue still to be resolved is how and what green fuels will be incentivised from the revenue generated by the proposed measure. If those decisions aren’t made this week, the fuel market and fuel buyers won’t have any clearer signal to invest,” said Bryan Wood-Thomas, WSC’s lead IMO representative and Vice-President for Environment and Climate.
He added, “The industry needs certainty, and we need it now. We cannot have these decisions deferred to guidelines to be developed two years from now and every few years thereafter. Without a clear incentive for cleaner fuels, we risk stalling momentum just as greener options are beginning to scale up.”
The World Shipping Council says it has been working with Singapore and other IMO member states to build consensus around a global proposal capable of driving decarbonisation in shipping.
“Liner shipping is already preparing for the clean transition,” Kramek said. “Nearly 200 vessels capable of running on renewable fuels are in operation today. By 2030, another 700 will join them. That’s billions of dollars already invested in cleaner technologies.”
“But these ships won’t be able to run on green fuels without a regulatory framework that makes ZNZ fuels commercially viable and available,” Joe Kramek concluded.