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20 Apr 2022 | 10:24 UTC
By Surabhi Sahu
Highlights
'More ambition' needed to expedite decarbonization
Advocates global market based measures
Allocates responsibility related to carbon pricing
BIMCO has updated its GHG position statement for the shipping industry while also supporting the objective of net zero carbon for shipping by 2050 to tackle climate change.
As the regulatory landscape continues to change, BIMCO supports the Initial Strategy of the International Maritime Organization, and its vision and objectives, but believes more ambition is needed, it said in a statement on April 20.
"Tackling the barriers to transition may be the single most important issue facing the shipping industry on its path to decarbonization," BIMCO said, adding that collaborative efforts and responsibilities were required by different industry stakeholders, from shipowners, shippers and charterers to energy suppliers, shipyards and engine makers.
BIMCO's board of directors has also approved the organization's updated greenhouse gas position statement, elaborating on who it believes should pay for carbon pricing and warning that excessive retroactive measures could have unintended negative consequences.
BIMCO made it clear that the commercial party responsible for setting the speed and route of a ship should also provide for emissions allowances or credits under a market-based measure, or MBM.
"We believe that in the case of a time charterparty, this responsibility should lie with the charterer, and under a voyage charterparty, it should be with the party that commits the ship to the voyage charter," David Loosley, BIMCO secretary general and CEO, said.
BIMCO said it was a persistent advocate for the implementation of a global MBM that would feature predictability and stability with regard to carbon price, making it suitable for incorporation in commercial contracts.
Loosley cautioned that "excessive retroactive technical measures when applied to existing ships could result in premature retirement of ships," resulting in unwarranted removal of needed capacity from the global supply chains and unnecessary additional emissions from building new ships.