FORTY-SEVEN nations and the International Chamber of Shipping have proposed a greenhouse gas emissions pricing mechanism for shipping, outlined in a joint submission to the International Maritime Organization.

The coalition has suggested amendments to the MARPOL convention that would require shipping companies to make contributions, per tonne of GHG emitted, to a so-called IMO GHG Strategy Implementation Fund.

The stated goal of the mandatory GHG charge is to reduce the cost gap between zero/near-zero GHG emission (ZNZ) fuels and conventional marine fuels, to incentivise the uptake of alternative fuels such as green methanol, ammonia and hydrogen.

The revenue would be used to reward the production and uptake of ZNZ fuels and support the maritime GHG reduction efforts of developing countries.

The proposed MARPOL text was submitted to IMO’s intersessional working group for GHG emissions reductions, due to meet from during the week commencing 17 February (ISWG-GHG 18).

All EU member states have backed the proposal, along with major flag states, namely the Bahamas, Liberia, Marshall Islands and Panama. Other countries in Africa and throughout the Caribbean and Pacific are also on the list, as are the ICS and European Commission.

ICS secretary general Guy Platten said the industry group – which also backed the proposal – is “very pleased that such a large and diverse group of nations now firmly supports a common approach to maritime carbon charging”.

“The joint text put forward by this broad coalition is a pragmatic solution and the most effective way to incentivise a rapid energy transition in shipping to achieve the agreed IMO goal of net zero emissions by or close to 2050,” Mr Platten said.

“This proposed joint text has been hard fought and is broadly based on ideas which ICS has been advocating for the past ten years.

“While a large number of governments now support a universal flat rate GHG contribution by ships – or something similar – a minority of governments continue to have concerns. Working in co-operation with all IMO member states we will do our best to allay such concerns during the final stages of these critical negotiations about regulatory text.”

ICS said if the MARPOL amendments are approved by IMO in April 2025, they should enter into force globally in early 2027, with the collection of annual GHG contributions from ships commencing in 2028.