Shipping industry proposes $2.5 billion annual GHG fee to achieve net zero by 2050

In the UK, the International Chamber of Shipping , alongside the governments of the Bahamas and Liberia, proposed a comprehensive plan to the International Maritime Organization  including a $2.5 billion annual GHG Fee to drive the adoption of zero or near-zero GHG marine fuels and meet net zero shipping emissions by 2050. The fee would be charged per tonne of CO2 equivalent emitted, with funds supporting a “feebate” system to incentivize green fuel use, and an IMO Net Zero Shipping Fund to aid developing countries in reducing maritime emissions.

The plan aims to close the cost gap between conventional fuels and alternatives like green ammonia and hydrogen. ICS Secretary General Guy Platten stressed the urgency, warning that without this pricing mechanism, shipping’s transition to net zero by 2050 is unlikely to succeed. The proposal calls for governments to adopt the GHG pricing mechanism by 2025 for global implementation by 2027, cautioning that failure could lead to fragmented regulations and economic disruptions, threatening the IMO’s authority as the industry’s global regulator.

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