The Board of the International Chamber of Shipping (ICS), which represents over 80% of the world’s merchant fleet, has submitted a revised proposal to the International Maritime Organization (IMO) that reaffirms the industry’s commitment to meet 2050 net-zero carbon goals. The proposal sets out the full details of how this can be achieved via a ‘Fund and Reward’ system financed by a mandatory contribution by ships per tonne of CO2 emitted. First movers on the use of alternative fuels such as methanol, ammonia and hydrogen, as well as sustainable biofuels and synthetic fuels plus new technologies including carbon capture will rewarded. In addition, the Fund will support the production of alternative marine fuels in developing countries. The fund will also be available to derisk the rollout of the new bunkering infrastructure that will be required on an accelerated timescale. The level of contributions to the IMO fund will be a decision for governments. However, ICS has suggested that total funds of about USD 10 billion per annum – which would require an initial contribution quantum of about US$50 per tonne of marine fuel oil consumed.
