THE INTERNATIONAL Chamber of Shipping has proposed amendments to the MARPOL convention to implement a global fuel standard.

Amendments to annex VI are among several proposals the ICS submitted to the International Maritime Organization ahead of the next round of IMO negotiations in July.

The ICS said the global fuel standard, developed as a technical measure, would reduce the greenhouse gas intensity of marine fuels by a target 5% by 2030, and with an “aggressive tightening” of the standard after 2030.

Shipowners represented by the ICS are calling on IMO member states to set a clearer direction to reach net zero by 2050.

“A fuel standard will not succeed on its own,” ICS deputy secretary general Simon Bennett said.

“It has to be supported by a radical economic measure, which will operate across the world to incentivise the production and uptake of the low and zero GHG fuels necessary to accelerate transition to a net zero destination.”

The ICS said is optimistic that governments will set a net zero target which sends a signal to energy producers and marine fuel suppliers, charting the direction of travel.

But, it believes there are more critical decisions governments need to make around how the end goal will be achieved.

“Shipowners are willing to pay into a multi-billion-dollar global fund, which if structured correctly, will reduce the cost gap between conventional fuel oil and the much more expensive zero GHG fuels as they begin to become available,” Mr Bennett said.

“The ICS Fund and Reward mechanism is an equitable measure that will also ensure developing countries can use some of the billions of dollars that would be generated each year, from shipowner contributions, to create the infrastructure of the future while incentivising first movers to act.

“A growing number of governments recognise the merit of these industry proposals, but we need to ensure that those developing nations that are still concerned about the impact on their economies, of the small cost additional to marine fuel, can recognise the opportunity that this IMO fund will unlock.

“To produce the very large amounts of low and zero GHG fuels, such as methanol, ammonia and hydrogen, sustainable biofuels and synthetic fuels (as well as developing new technologies such as carbon capture) is going to take real world regulation and meaningful incentives, not just the adoption of a new GHG reduction target.

“Setting a direction of travel is important, but without the tools to get there it becomes meaningless aspiration.”