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The IMO’s Intersessional Working Group on reduction of GHG emissions from ships which met last week considered various proposals for mid-term measures to reduce GHG emissions, including a number of submissions related to potential market-based measures. In line with the Work plan on the development of mid- and long-term measures agreed last June by the Marine Environmental Protection Committee (MEPC), the proposals tabled present the main features and implications of these measures as follows:

• the legal framework of mid-term measures; principles of possible market-based measures;
• a GHG levy, a GHG fuel standard, a GHG cap-and-trade system, and possible combinations of these;
• principles of carbon pricing, management and disbursement of carbon revenues.

Further discussions and assessment of mid-term GHG reduction measures, including those that incentivise the use of sustainable low-carbon and zero-carbon fuels in international shipping, are still needed before starting the selection phase of the Work Plan in spring 2022. The Chair of the working group noted that all proposed measures were welcomed and would be kept on the table for further consideration without selecting nor excluding any proposal, in order to work towards achieving the IMO ambition of reducing GHG emissions form shipping by at least 50% by 2050 compared to 2008. Discussions on mid-term measures to reduce GHG emissions are expected to continue in November.

Source: IMO