The Danish and Norwegian shipowners’ associations hope the IMO is ready to act after last week’s positive signals regarding a CO2 levy. A long process lies ahead, according to Bimco’s deputy secretary general — possibly as long as ten years.
Both the Danish and Norwegian shipowners’ associations are optimistic following last week’s meeting of the International Maritime Organization (IMO) regarding a tax or levy on fossil fuels.
Preliminary meetings leading up to the mid-June session in the IMO’s climate committee, the Marine Environment Protection Committee (MEPC), meant that several prominent players signaled their support, as there seemed to be a unique momentum for a levy on fossil fuels.
Or, to put it differently: There was no strong opposition against introducing an additional charge on fossil fuels in order to encourage shipowners to choose green fuels, which are currently too expensive.
If an agreement on efficient measures is not landed, it will be a defeat for the IMO as a global regulator
Maria Skipper Schwenn, director of Climate, Environment and Security, Danish Shipping
Maria Skipper Schwenn, director of Climate, Environment and Security at trade organization Danish Shipping, is relatively optimistic, but she also stresses the importance of the countries taking concrete action now.
First time with no opposition
”It was the first time there were no countries arguing against a market-based mechanism, and it’s positive that everyone seems to agree that there is a need for a measure that equalizes the price difference between fossil and green fuels. It is crucial for decarbonization that this measure is implemented and we hope it will happen as soon as possible,” says Schwenn in a comment to WPO.
The Norwegian Shipowners’ Association highlights that a levy is a crucial tool.
”Landing a CO2 levy will be crucial in order to initiate the reduction of shipping’s emissions, and we believe that the IMO will make it happen. If an agreement on efficient measures is not landed, it will be a defeat for the IMO as a global regulator and it will undoubtedly lead to different regional climate measures,” reads a comment to WPO.
May take up to ten years
A CO2 levy has been discussed for years without ever really moving up on the agenda. According to Bimco’s Deputy Secretary General Lars Robert Pedersen, it may be several years before the levy becomes reality, despite the positive IMO signals. Maybe up to ten years, he assesses.
It is probably more realistic to say ten rather than two years
LARS ROBERT PEDERSEN, deputy secretary general, BIMCO
”We are optimistic in the way that all proposals are on the table. We are having discussions, but we still don’t have a specific solution. We are still in the preliminary phases, in which we try to locate what kind of legislation that could work. There is talk of a combination of something technical and some carbon pricing. What it has to be and how the interplay is supposed to be – that we don’t know at all yet,” he points out, adding:
”Carbon pricing is not something that is realistic to pass at an international level on the short term. What we are discussing in general are mid- and long-term measures. Mid-term covers 2023-2030, while long-term is after 2030. In regards to carbon pricing, that is on the long term.”
So carbon pricing may be several years from being implemented?
