Proposals On Effective Energy Transition In Global Shipping Submitted To IMO
(MENAFN- Trend News Agency)
BAKU, Azerbaijan, August 1. The World Shipping
Council (WSC) has submitted its proposals on a just and efficient
energy transition in global shipping to the IMO (UN International
Maritime Organization), Trend reports via WSC.
The issue is about the Green Balance Mechanism, designed to
ensure the achievement of net-zero emissions by 2050.
The mechanism must make alternative (green) fuel more
competitive in price by bridging the price gap with conventional
fuel.
Shipping companies using fuels with higher greenhouse gas (GHG)
intensity were proposed to be charged some funds and redistribute
them to those who choose green fuel.
According to WSC, this is expected to make green fuel more
attractive to shipping companies, as well as fuel demand for
bunkering with alternative fuels, and the funds will be allocated
so that the average cost of fossil and green fuel is roughly
equal.
"The greater the greenhouse gas emission reductions a fuel
delivers – on a well-to-wake lifecycle basis – the greater the
financial allocation received," the WSC explained.
The Green Balance Mechanism can also be a framework to create a
parallel 'IMO Net-Zero Fund' to raise funds for Research,
Development & Demonstration projects designed for climate
mitigation.
WSC is an association of maritime carriers.
MENAFN01082024000187011040ID1108504831
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.