Incentivise, don’t just penalise – ICS to IMO
The International Chamber of Shipping (ICS) has called for clear incentives for shipowners that meet regulatory targets under the IMO's newly approved net-zero framework.
IMAGE: Representatives from member states at the IMO’s Intersessional Working Group on the Reduction of GHG Emissions from Ships meeting in London. X of @IMOHQ
While the framework outlines penalties for non-compliance, it lacks clear guidance on incentives for using low- and zero-emission fuels, ICS said in its latest proposal to the IMO.
This includes the need to define how rewards are calculated and how they would be distributed.
Clear and predictable rewards can help bridge the price gap between fossil fuels and low- and zero-emission alternatives, making it more financially viable for shipowners to invest towards cleaner options. They can also provide certainty for suppliers to scale up production, the proposal said.
The ICS suggested replacing the word “may” with “shall” in the IMO’s approved draft to provide greater regulatory certainty.
It urged the IMO to clearly define well-to-wake emission factors for alternative fuels under its lifecycle assessment guidelines. The current draft leaves this gap unaddressed, which many experts argue could lead to broader adoption of unsustainable alternative bunker fuels.
Finally, it called on EU regulators to phase out the bloc’s Emissions Trading System (ETS) for shipping and adopt the IMO’s global net-zero framework once implemented. A dual regulatory regime could impose an additional penalty burden on European shipowners, ICS argued.
“Combined, the potential extra costs of unilateral GHG measures will have significant economic impacts on national economies and the efficiency of maritime trade,” it said.
The IMO is expected to formally adopt its net-zero framework as amendments to MARPOL Annex VI during its extraordinary session in October.
By Konica Bhatt
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