- WSC urges IMO to adopt global carbon pricing to close the cost gap between fossil and green fuels.
- Industry leaders stress the need for clear incentives to accelerate investment in zero-emission fuel supply.
- Nearly 900 green-ready vessels expected by 2030, showing strong industry commitment to decarbonization.
The World Shipping Council (WSC) has issued a statement ahead of the International Maritime Organization’s (IMO) 83rd Marine Environment Protection Committee (MEPC 83) meeting, emphasizing the critical need for a global carbon pricing mechanism in the shipping industry. WSC President & CEO Joe Kramek highlighted that such a measure would be a significant milestone for climate policy and a turning point for shipping.
Bridging the Price Gap Between Fuels
The WSC underscores that for the carbon pricing initiative to be effective, it must address the cost disparity between traditional fossil fuels and cleaner alternatives, including zero and near-zero (ZNZ) fuels. This approach is essential to stimulate investment in green energy and fuel supply, fostering economies of scale that can reduce costs over time.
Urgent Need for Clear Incentives
Bryan Wood-Thomas, WSC’s Vice-President for Environment and Climate, pointed out that unresolved issues remain regarding how revenues from the proposed measure will incentivize green fuels. He stressed that without prompt decisions, fuel markets and buyers lack the necessary signals to invest, potentially hindering momentum as greener options begin to scale up.
Industry’s Commitment to Decarbonization
The liner shipping sector is proactively preparing for a clean transition, with nearly 200 vessels capable of operating on renewable fuels currently in service and an additional 700 expected by 2030. These investments in cleaner technologies underscore the industry’s commitment to decarbonization. However, Kramek emphasized that these ships require a supportive regulatory framework to ensure the commercial viability and availability of ZNZ fuels.
The WSC continues to collaborate with IMO member states, including Singapore, to build consensus around a global proposal aimed at driving decarbonization in shipping.
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Source: World Shipping Council
