BIMCO backs carbon pricing and net zero shipping

BIMCO has urged the International Maritime Organisation (IMO) members to adopt a more ambitious greenhouse gas (GHG) emission reduction target, calling for net zero shipping by 2050.

PHOTO: Oil tanker with smoke trail. Getty Images

It believes the IMO’s Initial Strategy, which targets a 50% reduction in total GHG emissions by 2050, “is not enough.”

BIMCO, which represents around 60% of the global merchant fleet by tonnage, calls for a global market-based measure (MBM) through putting a price on carbon and incentivising investment in and operation of low-carbon emitting ships.

Such an MBM should be established and monitored by the IMO and comply with its previously agreed nine principles, it says.

BIMCO argues that the commercial party responsible for fixing the speed and route of a ship should pay for emissions allowances or credits under any future MBM.

“This means the charterer in case of a time charterparty and the party that commits the ship to the voyage charter in case of a voyage charterparty,” BIMCO says.

The shipping body also cautions against scrapping ships prematurely could put a strain on global supply chains, and generate unnecessary emissions from newbuilds replacing them.

It advocates for GHG emissions reduction through operational measures such as speed optimisation and shortening waiting times at ports.

It also supports setting up an IMO Maritime Research Board with a mandatory contribution on fuel used by ships, and development of a global fuel carbon content standard for universal certification of marine fuels’ emissions profiles.