Media Release – 23 September 2024
“INTERCARGO Calls for Simplicity in Shipping Decarbonization Measures”
International dry bulk shipping association backs streamlined approach to IMO’s mid-term GHG reduction strategy
INTERCARGO, the International Association of Dry Cargo Shipowners, reaffirms its commitment to sustainable shipping by advocating for straightforward mid-term measures in the industry’s decarbonization efforts. The association, representing one of the most efficient cargo transportation sectors globally, emphasized the critical need for practicable solutions to ensure effective implementation of emissions reduction strategies.
Key Points:
Support for Integrated Framework: INTERCARGO endorses in principle the updated joint proposal by Bahamas, Liberia, and the International Chamber of Shipping (ICS) for an “IMO net-zero framework.”
Simplified Pricing Mechanism: Backing a flat-rate contribution per tonne of GHG emitted, with incentives for zero and near-zero GHG fuel usage.
Predictability for Stakeholders: Advocating for fixed annual GHG fees over minimum five-year periods.
Well-to-Wake Approach: Supporting a comprehensive emissions accounting system while addressing concerns about upstream emissions beyond shipping’s control.
Cautious Approach to Decarbonization Fund: Highlighting the need for thorough review of legal issues and alignment with UN climate fund principles.
Fair Cost Distribution: Endorsing the principle that charterers or commercial operators, as fuel cost bearers, should also cover GHG fees and compliance costs.
Reduced Administrative Burden: Calling for streamlined processes, especially for dry bulk tramp shipping facing global compliance challenges in accessing safely green energy sources in ports around the world.
“The path to shipping’s decarbonization must be paved with practical, implementable solutions,” said INTERCARGO’s Secretary General Kostas Gkonis. “Our support for these measures reflects our sector’s commitment to environmental responsibility whilst maintaining operational efficiency and smooth global transportation of essential goods”.
INTERCARGO stresses the importance of global governmental action and cross-stakeholder collaboration throughout the maritime transport chain to achieve these ambitious goals.
For more information about INTERCARGO’s position on shipping decarbonization, please visit www.intercargo.org or contact info@intercargo.org.
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About INTERCARGO
International shipping is vital for the global economy and prosperity as it transports approximately 90% of world trade. The dry bulk sector is the largest shipping sector in terms of number of ships and deadweight. Dry bulk carriers account for 43% of the world fleet (in tonnage) and carry an estimated 55% of the global transport work. Please view INTERCARGO’s messaging via ESG here: https://www.intercargo.org/esg-review-2024/
The International Association of Dry Cargo Shipowners (INTERCARGO) unites and promotes quality dry bulk shipping, bringing together more than 250 forward thinking companies from 30 countries. INTERCARGO convened for the first time in 1980 in London and has been participating with consultative status at the International Maritime Organization (IMO) since 1993. INTERCARGO provides the forum where dry bulk shipowners, managers and operators are informed about, discuss, and share concerns on key topics and regulatory challenges, especially in relation to safety, security, the environment, and operational excellence. The Association promotes its members’ positions to IMO, as well as to other shipping and international industry fora, having free and fair competition as a principle.
