IMO GHG Levy Talks Face Challenges Ahead Of MEPC83

Discussions on a universal greenhouse gas (GHG) levy at the International Maritime Organization (IMO) remain unresolved following last week’s Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 18). The lack of major breakthroughs signals ongoing challenges in reaching a consensus before the crucial Marine Environment Protection Committee (MEPC83) meeting in April.

Concerns Over Ship Managers’ Liability

InterManager, the association representing third-party ship managers, has submitted a paper to MEPC83, highlighting concerns over their role in emissions reduction.

• Around 20% of the global fleet is managed by third-party technical ship managers.
• Unlike shipowners and charterers, managers do not control fuel choices, engine types, or emission-reducing technologies.
• Proposed MARPOL Annex VI amendments could make ship managers responsible for GHG penalties, despite their lack of influence over emissions.

InterManager urges IMO policymakers to reconsider the legal and financial implications to avoid unfair litigation risks for ship managers.

Impact on the Fuel Supply Chain

A joint submission from OCIMF, IPIECA, and IBIA warns that the IMO’s 2023 GHG Strategy will significantly transform the marine fuel supply chain. Key concerns include:

• Fuel competition: Shipping will compete for low-carbon fuels with other industries, necessitating long-term investment incentives.
• Infrastructure limitations: Many fuel production units are not easily adaptable to alternative fuels, creating risks of stranded assets.
• Transition phase challenges: A continued supply of conventional marine fuels will be essential to prevent disruptions and ensure compliance.

Urgency Ahead of MEPC83

Despite divergent views, Guy Platten, Secretary General of the International Chamber of Shipping (ICS), remains optimistic about progress:

“It is encouraging that negotiations continue in a positive and cooperative spirit.”

With just six weeks until MEPC83, IMO Member States must work towards a final agreement on fit-for-purpose MARPOL amendments, balancing climate goals with industry feasibility.