International Chamber of Shipping proposes Zero Emission Shipping Fund

The International Chamber of Shipping (ICS) has partnered with the Commonwealth of The Bahamas and the Republic of Liberia to submit a detailed proposal to the United Nations’ International Maritime Organization (IMO) for a Zero Emission Shipping Fund (ZESF). This initiative aims to accelerate the transition to net zero emissions by 2050 and support developing countries in their maritime greenhouse gas (GHG) reduction efforts.

The ZESF proposal seeks to raise billions of dollars annually through mandatory contributions on ships' GHG emissions. These funds are intended to incentivize the production and uptake of zero GHG marine fuels and technologies, aiding the global shipping fleet's transition to net zero emissions. The proposal emphasizes transparency and accountability in fund allocation, particularly in supporting the efforts of developing countries.

“The transition to net zero shipping must be truly global. Otherwise, it will not succeed,” explains Guy Platten, the ICS Secretary General. “The 2050 goal will only remain plausible if government negotiators now roll up their sleeves to develop the regulations needed to establish the Zero Emission Shipping Fund.”

“A global GHG pricing mechanism for shipping urgently needs to be agreed on next year, which will de-risk investment in zero GHG marine fuels and provide billions of dollars of funds to support developing countries,” he adds.

The ZESF proposal will be discussed at the next round of IMO negotiations in March. If approved, it will play a crucial role in achieving net zero GHG emissions from shipping by 2050. The proposal aligns with the ambitious GHG reduction targets set by IMO Member States and offers a pathway towards sustainable shipping.

For more information on the ZESF proposal, click here.