BIMCO has voiced its belief that the mandatory US$2 per tonne fuel oil payment to be levied on shipping companies is not intended to be a market-based measure to reduce air pollution, but a fundraising scheme, yet has given its backing to the proposed $5 billion fund.
The owners' association was responding to what it considers 'misunderstandings' concerning a new industry-wide proposal for the creation of a $5 billion international fund to help finance maritime decarbonisation research and development, reported London's Lloyd's List.
Shipping's biggest associations, including BIMCO, have table a proposal for an independent research and development body, known as IMRB, supported by the mandatory $2 per tonne of fuel oil payment from shipping companies.
The associations clarified in their proposal that it is not meant to delay the introduction of a potential market-based measure and even suggested that it could offer the blueprint for its eventual development.
BIMCO deputy secretary-general Lars Robert Pedersen reiterated that the $2 is solely purposed for this research and development endeavour.
'We fully agree that the $2 per tonne of fuel is way too small to act as an incentive to change behaviour in the industry,' he told Lloyd's List. 'This is why the IMRB proposal is not a market-based measure, or carbon price if you like.'
Instead, it is a contribution by all industry players to the joint effort of making available solutions that can decarbonise the industry.
Mr Pedersen added: 'A future carbon price may thus be needed to drive uptake and we agree that such a measure will likely require a much higher price tag.'
IMO members will consider a market-based measure as a potential 'mid-term measure,' which would be finalised and agreed upon between 2023 and 2030.
WORLD SHIPPING
The owners' association was responding to what it considers 'misunderstandings' concerning a new industry-wide proposal for the creation of a $5 billion international fund to help finance maritime decarbonisation research and development, reported London's Lloyd's List.
Shipping's biggest associations, including BIMCO, have table a proposal for an independent research and development body, known as IMRB, supported by the mandatory $2 per tonne of fuel oil payment from shipping companies.
The associations clarified in their proposal that it is not meant to delay the introduction of a potential market-based measure and even suggested that it could offer the blueprint for its eventual development.
BIMCO deputy secretary-general Lars Robert Pedersen reiterated that the $2 is solely purposed for this research and development endeavour.
'We fully agree that the $2 per tonne of fuel is way too small to act as an incentive to change behaviour in the industry,' he told Lloyd's List. 'This is why the IMRB proposal is not a market-based measure, or carbon price if you like.'
Instead, it is a contribution by all industry players to the joint effort of making available solutions that can decarbonise the industry.
Mr Pedersen added: 'A future carbon price may thus be needed to drive uptake and we agree that such a measure will likely require a much higher price tag.'
IMO members will consider a market-based measure as a potential 'mid-term measure,' which would be finalised and agreed upon between 2023 and 2030.
WORLD SHIPPING