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MIAL welcomes IMO consensus on ambitious targets to cut global shipping emissions

Ending two weeks of intensive negotiations, last week, delegates from 175 nations finalised the much anticipated and historic agreement to further cut global emissions from international shipping, marking a clear path to net zero emissions by 2050 in line with the Paris goals.

Angela Gillham, MIAL CEO, said the agreement is welcome as it sends a strong signal to the global shipping industry and new energy manufacturers.

“MIAL has been very clear on our position that if the industry is to decarbonise, the IMO must agree to firm, practical and ambitious targets to deliver the investment confidence that energy producers require to ensure availability of low carbon fuels for the industry to transition towards.

“2023 IMO Strategy on Reduction of GHG Emissions from Ships provides many of the elements we were looking for, including providing the impetus to further consider economic measures, that would unlock fast-tracked development and supply of green fuels for use by the shipping industry.

“There are various economic measures already on the table for consideration at IMO, including the so called ‘Fund and Reward’ proposal submitted by the International Chamber of Shipping. The ‘Fund and Reward’ model would require shipowners to make mandatory contributions per tonne of CO2 emitted to an IMO fund. Funds collected via the levy would reward uptake by shipowners of low and zero-carbon fuels and could provide funding for alternative fuel production and bunkering infrastructure in developing countries.

“It is quite clear that an economic measure will be required to incentivise uptake of new fuels by helping to address the significant cost delta between new and conventional fuels and we look forward to IMO quickly progressing work in this critically important area.

“Domestically, MIAL continues to work with government through the Maritime Emissions Reduction National Action Plan to develop the necessary domestic frameworks and incentives to spur the local production and uptake of cleaner fuel technologiesto decarbonise ourindustry and take advantage of the immense opportunity that presents to the nation.”

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