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IMO to impose levy on shipping firms failing to cut GHG emissions

The International Maritime Organisation will impose a levy on companies that fail to cut down greenhouse gas (GHG) emissions in the shipping industry, Secretary-General Kitack Lim said.
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Secretary-General said the direct impact on the shipping companies and the indirect impact on every country in the world would be analysed and also asserted that the IMO is actively considering extending bunkering services all around the world as a financial support measure.

The International Maritime Organisation will impose a levy on companies that fail to cut down greenhouse gas (GHG) emissions in the shipping industry, Secretary-General Kitack Lim said. During a media interaction on the sidelines of the Maritime Environment Protection Committee’s (MEPC) 80th session here, Lim said that the committee had already adopted a decision regarding the financial levy last week.

“We will work out the modalities and finalise them this week,” Lim said, speaking at the IMO headquarters.

He said the MEPC would also discuss and finalise modalities of the disbursement of the fund, adding that this economic measure is crucial to support the industry that might be adversely impacted while adopting a carbon-neutral goal.

“We will have to use this fund in R&D to incentivise shipping companies and also to financially support the island nations and developing countries,” the secretary-general said.

Lim said that the IMO would do an impact assessment in its member states and hoped it could be started by 2025.

He said the direct impact on the shipping companies and the indirect impact on every country in the world would be analysed and also asserted that the IMO is actively considering extending bunkering services all around the world as a financial support measure.

The IMO may be able to financially support some countries after understanding the economic impacts on them. “We may not be able to support every country. Some countries will have to absorb some of the impacts,” Lim added. However, he was categorical about extending financial compensation to island nations and developing countries.

Regarding the demands for a free transfer of technology, Lim said that more talks are needed on this subject and hoped that a clearer policy could be adopted during the Intersessional Working Group discussions this week. Lim also expressed his hope for the IMO to reach a conclusion regarding its decarbonisation goals by the end of this week when the MEPC’s 80th session concludes.

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