- IAPH Warns Mixed National Measures Could Harm Maritime Energy Transition.
- Economic Measure Urged to Fund Low- and Zero-Carbon Fuel Uptake.
- Framework Adoption Crucial for Ports in Developing Countries.
As the IMO Member States gear up to cast their votes during the week of October 13 on some crucial amendments to the MARPOL Convention, the IAPH Managing Director is calling on all stakeholders to rally behind a global economic measure. He cautioned that relying on a mix of national and regional initiatives could lead to a disaster for the maritime energy transition, reports WPSP.
IAPH Urges Economic Measures to Aid Decarbonisation
At an event focused on shipping decarbonisation, hosted by Accelleron during London International Shipping Week, IAPH Managing Director Patrick Verhoeven underscored the potential risks of a negative outcome from the upcoming vote on the IMO’s Net Zero Framework (NZF) measures at the extraordinary MEPC meeting set for mid-October.
Before the MEPC80 meeting in July 2023, IAPH, along with other stakeholders, advocated for an economic measure aimed at bridging the pricing gap between hydrocarbon fuels and low- and zero-carbon alternatives.
This measure would also help fund the essential research and development needed to speed up the shipping industry’s energy transition, as well as crucial investments in port infrastructure to ensure the availability of new fuels, especially in developing countries that might otherwise be left behind.
Since then, IAPH has been a steadfast supporter of implementing a global fuel standard for shipping, paired with an economic measure that includes a pricing mechanism and credit trading scheme, to reduce emissions and facilitate the shift to zero- and low-carbon fuels.
Urgent Appeal for IMO Net Zero Framework Adoption
Patrick Verhoeven called on IMO Member States to vote in favour of the amendments: “Adopting the IMO Net Zero Framework which was agreed upon last April will send a clear signal to industry, providing the incentive that is needed for the uptake of new low and zero carbon fuels. IAPH supports the economic measure as it will also provide vital funding for infrastructure investments in ports of developing countries, in order for them not to be left behind in the energy transition.”
Investment Needs in Developing Country Ports
Last year, the International Association of Ports and Harbours (IAPH) shared a report with the International Maritime Organisation (IMO) that highlighted the results of a study done by Maritime & Transport Business Solutions (MTBS). This study focused on the investment needs for climate adaptation and decarbonization in ports located in developing countries. It revealed that the IMO Net Zero Fund could play a crucial role in helping these nations adapt to and lessen the impacts of climate change on their ports, paving the way for a fair transition.
The costs associated with decarbonising port infrastructure can differ significantly based on factors like the size of the port, its location, the current state of its infrastructure, and any previous adaptation efforts. Backed by various case studies, the report estimated that the total investment required for port adaptation and mitigation in developing countries ranges from 55 to 83 billion USD.
Risks of Failing to Adopt the Framework
Verhoeven warned of the consequences of inaction: “A failure to adopt the Framework would create absolute investment uncertainty, both for shipping companies and ports, and with that significantly delay the decarbonisation of the maritime sector. Achieving IMO’s net zero targets would become impossible. It would most likely lead to more regional decarbonisation measures for shipping, adding to those already introduced through the Emission Trading Scheme by the EU. This will result in a complex regulatory patchwork which will be extremely challenging for ship owners and operators to comply with and which will have unintended consequences like we have already seen in the case of Europe. A mixture of national and regional measures could spell a disaster for the maritime energy transition.”
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Source: WPSP
