- China, Saudi Arabia, and the UAE question the reliability of the UNCTAD impact report.
- They argue for using TtW emissions instead of WtW emissions for setting IMO’s mid-term measures.
- They highlight issues with the availability of future technologies like e-fuels and onboard carbon capture.
China, Saudi Arabia, and the UAE have expressed concerns about the UNCTAD impact assessment report, calling it “unconvincing and misleading.” They argue that the report’s conclusions are flawed and should not form the basis of the IMO’s upcoming mid-term measures for reducing GHG emissions, reports Engine.
Focus on Tank-to-Wake (TtW) Emissions
The countries propose that GHG emission targets should be set based on tank-to-wake (TtW) emissions instead of well-to-wake (WtW) emissions.
TtW emissions only account for the emissions from ships themselves, which fall under global shipping regulations, while WtW includes the entire lifecycle of fuel production.
Concerns About Practicality of Emission Models
The proposal also questions the practicality of DNV’s modelling of emission reduction trajectories, stating that it assumes the unlimited availability of technologies like e-fuels and onboard carbon capture and storage (OCCS).
They argue that the supply of these technologies is unlikely to meet demand, especially by 2030 and 2040.
Criticism of Carbon Levy Focus
China, Saudi Arabia, and the UAE criticized the comprehensive impact assessment (CIA) report for focusing too heavily on scenarios involving carbon levies.
They noted that the report failed to model scenarios where a flexibility mechanism exists without revenue-generating levies, which could provide other forms of financial flexibility.
Recommendations for Revenue Distribution
The proposal also addresses how revenue from any potential emission reduction measures should be distributed.
They suggest that after rewarding ships using low- and zero-emission fuels, the remaining revenue should primarily be reinvested in the shipping sector to promote further emission reductions.
Upcoming Discussions at MEPC 82
This proposal from China, Saudi Arabia, and the UAE may be discussed at the IMO’s 82nd Marine Environment Protection Committee (MEPC 82), scheduled for later this month.
The countries aim to influence the IMO’s decision-making on mid-term measures for reducing GHG emissions in the shipping industry.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Engine
