Image credit: International Chamber of Shipping (ICS)

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The chairman of the International Chamber of Shipping (ICS), Esben Poulsson, on Thursday said he was "confident" that new developments in technology will enable the shipping industry to develop zero-carbon propulsion solutions that meet the greenhouse gas (GHG) emission goals set by the International Maritime Organization (IMO) at its recent Marine Environment Protection Committee (MEPC) meeting.

During this month's MEPC meeting, participants agreed to cut the total GHG emissions of shipping by at least 50% by 2050, compared to 2008, with an agreed efficiency improvement goal, as an average for the sector, of 40% by 2030 compared to 2008, and 70% by 2050.

Speaking at Singapore Maritime Week today, the ICS chairman stressed that, as a result of the IMO accord, it will only be possible to meet the new long-term objectives with zero CO2 solutions, whilst positing that LNG and biofuels will also have a role to play over the coming years.

"To be clear, while LNG and biofuels will probably form a part of the interim solution, the very high goals IMO has now set for 2050 can only be achieved with the development of zero CO2 propulsion systems," Poulsson said.

"ICS is confident that new technology will eventually deliver; whether through the use of fuel cells or batteries powered by renewable energy, new fuels such as hydrogen, or some other solution not yet anticipated," the shipping association added.

Market-based measures (MBM)

The new IMO GHG strategy includes a list of possible candidate measures to achieve further CO2 reduction while shipping is still dependent on fossils fuels, including additional measures that could be ready for implementation before 2023.

ICS says it is already now developing detailed input to the IMO on all these proposals, with the application of a market-based measure described by ICS as being the "most controversial".

Outlining its stance on MBMs, ICS said: "The position of ICS is that it remains deeply sceptical of MBMs as a means of further incentivising CO2 reduction. Fuel is already by far the largest cost for shipowners and this is expected to increase dramatically as a result of the new mandatory global IMO sulphur cap in 2020."

Poulsson remarked: "As IMO debates how best to implement its strategy, we would much prefer that it concentrates on further technical CO2 reduction measures, not least promoting the development of zero CO2 fuels.

"However, should IMO decide there is a political need to develop an MBM, the clear preference of the global industry would be for a bunker fuel levy payable to some kind of IMO climate fund.

"If such a levy was developed, the funds should be deployed to support research into new low-carbon technologies or to support the roll-out of the expensive new bunkering infrastructure that will be required to supply zero CO2 fuels."