Countries reach agreement on greening the shipping sector
The member states of the International Maritime Organisation (IMO), the United Nations agency responsible for regulating maritime transport, have on Friday reached an agreement on greening the shipping sector. It involves both a standard to curb fossil fuel use and a pricing mechanism for companies that fail to meet the imposed standards. 63 countries supported the plan, including Belgium, reported the website Climate Home News.
Back in July 2023, the IMO already adopted a strategy to become climate-neutral by 2050. There is now more clarity on exactly how that path is to be followed. For instance, ships will be allowed to emit 30 per cent less greenhouse gases by 2035. By 2040, that figure rises to 65 per cent. In each case, these are reduction targets compared to 2008.
Companies that do not meet that standard will have to dip into their pockets to make up the difference. To do so, they will have to pay 380 dollars per tonne of CO2 equivalent. That money will go to a “Net Zero Fund”, which will be used to green the maritime sector and offset any negative effects, such as higher food prices due to more expensive shipping. Contrary to what some poorer countries had hoped, the money may not be used in their fight against climate change.
There is also a second, more ambitious bar, set at a 43 per cent reduction in emissions by 2035. Several remedial options are also provided for failing to meet that bar. For instance, companies can purchase cheaper carbon credits (100 dollars per unit of CO2 equivalent), buy up any surplus from other companies or make use of any surpluses they have accumulated themselves.
Threats by the US
63 countries showed support for the plan, including Belgium. 16 countries, including Russia and Saudi Arabia, voted against it. The United States did not take part in the vote. US representatives had returned home earlier, threatening with “reciprocal measures to compensate for fees charged to US ships”.
The shipping industry, which like the aviation sector is not covered by the Paris Climate Agreement, becomes with this agreement the first sector to set itself binding reduction targets.
Illustration © BELGA PHOTO Jonas Ekströmer / TT / Code 10030
Related news
