In a significant move to address the pressing need for actionable solutions in meeting ambitious net-zero targets, shipowners worldwide have collectively embraced mandatory contributions to ships’ greenhouse gas (GHG) emissions. This groundbreaking initiative aims to generate billions of dollars annually, fostering the rapid transition of the global commercial shipping fleet to net-zero emissions by 2050 and supporting GHG reduction efforts in developing countries.
Coordinated Effort by Flag State Giants
The proposal, co-sponsored by the Bahamas and Liberia, two of the world’s largest flag state administrations, builds upon the innovative “feebate” concept proposed by the Government of Japan. With backing from EU states at the International Maritime Organization (IMO), the updated proposal advocates for a flat-rate “levy-based” global contribution system
Transparent Funding Structure for Global Impact
The revised proposal introduces a structured approach for transparency and accountability in utilizing the raised funds. It outlines how the billions of dollars generated annually will be allocated, particularly on supporting initiatives in developing countries. This move signifies a crucial step towards a globally unified effort to achieve net-zero shipping, urging governments to adopt a global greenhouse gas pricing mechanism for the industry.
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Source: Offshore Energy