MEPC 82: Prioritise revenue disbursement under the mid-term measures – India

India has urged the IMO to prioritise a revenue disbursement mechanism to supplement its economic mid-term measures, according to the country's proposal to the regulator.

PHOTO: The Indian Port of Mundra in Gujarat. YouTube of Adani Ports

The revenue generated from the IMO’s mid-term economic measures should be allocated towards projects that help developing countries build capacity to meet the IMO’s interim GHG emission targets, the South Asian nation suggested.

The shipping regulator is expected to implement an economic measure, such as a global pricing mechanism for GHG emissions from ships, by 2025, with the measure potentially coming into effect by 2027.

“Rather than debating in-sector and out-of-sector, the distribution can be project-specific and the Organization should detail the projects under each category of revenue distribution so that countries getting revenues spend the same in the sector with resultant reduced negative impacts on States and transition to net-zero GHG emissions,” India wrote.

India recommended that 25% of the revenue be allocated to reward ships using low- and zero-emission fuels under a feebate mechanism.

It suggested that 40% of the revenue be equally divided between onboard carbon capture and storage projects and port development initiatives, including seafarer training, shore power supply and green fuel bunkering infrastructure.

Additionally, 20% of the revenue could be allocated to developing countries, least-developed economies and island nations, based on their vulnerability to climate change impacts.

“Funds allocated to countries for capacity-building, infrastructure development, and offsetting negative impacts should be fully utilized within the sector, with administrative costs not exceeding 5% of the allocated funds,” India added.

India also recommended that the IMO establish a “revenue utilization monitoring committee,” composed of Member States.

This proposal may be discussed at the IMO’s 82nd Marine Environment Protection Committee (MEPC 82) meeting scheduled later this month.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online