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.

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