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INTERCARGO calls for simplicity in IMO mid-term GHG reduction strategy

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Association emphasised critical need for practicable solutions including a simplified pricing mechanism and fair cost distribution to ensure effective implementation of emissions reduction strategies.
RESIZED Chris Pagan

INTERCARGO, the International Association of Dry Cargo Shipowners, on Monday (23 September) called on the International Maritime Organization (IMO) for a straightforward mid-term GHG reduction strategy in the industry’s decarbonisation efforts. 

The association emphasised the critical need for practicable solutions to ensure effective implementation of emissions reduction strategies.

Key Points:

  • Support for Integrated Framework: INTERCARGO endorses in principle the updated joint proposal by Bahamas, Liberia, and the International Chamber of Shipping (ICS) for an “IMO net-zero framework.”
  • Simplified Pricing Mechanism: Backing a flat-rate contribution per tonne of GHG emitted, with incentives for zero and near-zero GHG fuel usage.
  • Predictability for Stakeholders: Advocating for fixed annual GHG fees over minimum five-year periods.
  • Well-to-Wake Approach: Supporting a comprehensive emissions accounting system while addressing concerns about upstream emissions beyond shipping’s control.
  • Cautious Approach to Decarbonisation Fund: Highlighting the need for thorough review of legal issues and alignment with UN climate fund principles.
  • Fair Cost Distribution: Endorsing the principle that charterers or commercial operators, as fuel cost bearers, should also cover GHG fees and compliance costs.
  • Reduced Administrative Burden: Calling for streamlined processes, especially for dry bulk tramp shipping facing global compliance challenges in accessing safely green energy sources in ports around the world.

“The path to shipping’s decarbonisation must be paved with practical, implementable solutions,” said INTERCARGO’s Secretary General Kostas Gkonis. 

“Our support for these measures reflects our sector’s commitment to environmental responsibility whilst maintaining operational efficiency and smooth global transportation of essential goods.”

INTERCARGO stressed the importance of global governmental action and cross-stakeholder collaboration throughout the maritime transport chain to achieve these ambitious goals.

 

Photo credit: Chris Pagan on Unsplash
Published: 24 September, 2024 

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