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illuminem summarizes for you the essential news of the day. Read the full piece on Offshore Energy or enjoy below:
🗞️ Driving the news: The International Chamber of Shipping (ICS) and 47 governments have proposed a carbon pricing mechanism for international shipping at the International Maritime Organization (IMO)
• The mechanism includes a mandatory greenhouse gas (GHG) charge per tonne of CO2e emitted, aimed at funding the transition to zero or near-zero GHG fuels
🔭 The context: Major maritime nations, EU states, and small island developing nations have coalesced behind the proposal
• The revenue would support developing countries and incentivize green fuel production
• This builds on the EU’s carbon levy mechanism, which began covering large ships in 2024 under its Emissions Trading System
🌍 Why it matters for the planet: Shipping accounts for 3% of global GHG emissions, and decarbonizing this sector is critical to achieving net-zero goals
• A global carbon tax could significantly reduce reliance on conventional marine fuels and accelerate the adoption of green alternatives like ammonia, methanol, and hydrogen
⏭️ What's next: The IMO will deliberate on this proposal in February 2025, with potential amendments to the MARPOL Convention approved by April 2025
• If adopted, the GHG contributions could start globally in 2028
💬 One quote: “The industry fully supports the adoption by IMO of a GHG pricing mechanism… the most effective way to incentivize a rapid energy transition in shipping,” – Guy Platten, ICS Secretary General
📈 One stat: The GHG contribution per tonne of CO2e emitted could range from $60 to $300, depending on reward rates for green fuels and support levels for developing nations
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