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Shipping Industry Poised for Greenhouse Gas Emissions Charge in 2025

Shipping giant AP Moller-Maersk A/S anticipates that the global regulatory body for the industry will approve a charge on vessels’ greenhouse gas emissions next year. During recent discussions at the International Maritime Organization (IMO) in London, nations have been making progress toward new regulations aimed at reducing emissions from a sector that emits around a billion tons of carbon dioxide annually. Simon Bergulf, Maersk’s representative for Europe, believes that a pollution charge will likely be approved by 2025.

The proposed new rules from the IMO include a gradual reduction in the greenhouse gas intensity of energy used by ships. If implemented, these regulations could significantly lower carbon emissions and potentially cost the industry billions if it continues to emit at current levels. Bergulf noted that while the exact details of the regulatory framework are still being finalized, the direction is becoming increasingly clear.

Shipping is responsible for over 80 % of global trade and largely relies on fossil fuels. This year, Houthi militant attacks in the Red Sea have forced vessels to take longer routes, further increasing emissions.

The IMO, a United Nations agency, aims to finalize the new regulations next year, with plans for them to take effect in 2027. If a global, mandatory pricing mechanism for greenhouse gas emissions is adopted, it would mark a significant milestone, being the first of its kind according to the World Bank. However, reaching consensus among the more than 175 member states can be challenging.

Bergulf mentioned that a previous proposal from Japan to charge around $60 per ton of emissions was reasonable, while a $150 charge from the outset without any flexibility would not be viable. Jan Dieleman, president of Cargill Inc.’s ocean transportation business, expressed optimism about the industry’s potential to transition into a leader in energy sustainability. He believes that if the shipping sector successfully implements these measures, it could set a precedent for other industries aiming for zero emissions globally.

Октябрь, 07, 2024 39 0
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Author photo - Olga Nesvetailova
Freelancer
A creative freelancer with the ability to study source literature and create relevant material. The sea has always attracted me with its unbridledness, mystery, and a love of creativity helped me express my most interesting thoughts and reflections on paper, therefore, now I am doubly interested in studying the world of shipbuilding and writing useful materials for sailors.
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