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article imageShipping industry proposes $5 billion fund to cut emissions

By Karen Graham     Dec 18, 2019 in Technology
Shipowner associations representing more than 90 percent of the global merchant fleet are seeking to create a US$5 billion research fund to help develop more environmentally friendly fuels and propulsion systems.
The proposed plan will be submitted to the International Maritime Organization (IMO), a branch of the United Nations, on Wednesday, according to BNN Bloomberg.
The global shipping fleet accounts for about 2.2 percent of the world's CO2 emissions and has been under a lot of pressure to reduce those emissions. To that end, the International Chamber of Shipping wants to create a non-governmental agency, funded by shipping companies through a mandatory contribution of $2 per metric ton of marine fuel.
The fund will aid shipping companies in the development of commercially viable zero-carbon emission vessels by 2050. Research and development of zero-carbon or low emission fuels is key to meeting the IMO’s target for lower emissions, according to the Chamber.
The International Chamber of Shipping said that the proposed $5 billion "is critical to accelerate the R&D effort required to decarbonize the shipping sector" and to spur the development of commercially viable zero-carbon ships by the early 2030s. It added that ``additional stakeholders' participation is welcomed.''
Simon Bennett, deputy secretary-general of the International Chamber of Shipping said the $2 per ton fuel contribution would raise about $5 billion over 10 years, reports Reuters.
“We can’t exaggerate the pressure we are under if we are going to meet the IMO 2050 targets. We really have very little time,” Bennett told Reuters. “Shipowners are increasingly realizing that we have to really get on with this now.”
If the IMO approves the proposed plan, it could be in place by 2023. The IMO said the proposal would be discussed by the organization’s Marine Environment Protection Committee at its next meeting at the end of March.
“Research and development will be crucial, as the targets agreed in the IMO initial strategy will not be met using fossil fuels,” an IMO spokesperson said.
More about shipping industry, Emissions, research fund, Technolgy, R&d
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