WSC comments post MEPC 82

There has been clear progress in negotiations at MEPC 82, and we are encouraged to see that the key industry priorities of a feebate and closing the price gap between green fuels and fossil fuels are considered critical going forward. Member states recognize that the core purpose of the mid-term measures is to drive the energy transition in the fleet, but there is much work remaining to get there.

World Shipping Council will continue to work with all parties for an ambitious and cost-effective measure, and the models put forward in the Green Balance Mechanism can provide viable tools for use in the forthcoming agreement. The elements of the Green Balance Mechanism are designed to work with a range of regulatory solutions, and remain part of the conversation as the specifics of the agreement are debated and developed. Our focus remains on ensuring that mid-term measures will close the price gap between green fuels and fossil fuels, that the full climate impact of fuels from well-to-wake is taken into account, and that regulations drive investment in green fuel production by encouraging the use of deep GHG reduction fuels.

We look forward to working with the parties on developing effective mid-term measures that will incentivize the use and production of green fuels so that shipping can reach net-zero by 2050, in a way that ensures a just and equitable transition. If elaboration is needed IMO functions by negotiation and consensus, and no-one expects “their” proposal to be adopted as is. The Green Balance Mechanism would be extraordinarily effective in ensuring the energy transition for shipping. That of course runs up against the political realities and concerns among member states about additional cost in the supply chain.

Read WSC’s Comments post MEPC 82 here.