Shipping can create a trillion-dollar investment opportunity through adoption of fuel levy, says GMF

Among the central discussions at the Marine Environment Protection Committee meeting at the IMO this week will be the development of an economic measure—potentially a carbon levy or fuel standard with trading mechanism. in an article first published in the Financial Times last week, Global Maritime Forum (GMF) CEO Johannah Christensen wrote

“In discussions with our industry partners at our latest annual summit in Tokyo, the message became clear: a fixed levy that is applied globally is the option that will provide the confidence that industry needs to unlock its trillion-dollar opportunity.

“In part, this is because a levy is a more bankable policy than other alternatives such as credit trading, which create uncertainty about the future value of investments in new fuels. But a levy can also be used to raise funds, money that can be recycled to support the new fuels on their path to competitiveness.

“While other options including biofuels may be more competitive today, we have no doubt that large quantities of fuels based on renewable electricity will be crucial to getting the industry to zero emissions. The maritime industry currently consumes more than 300mn tonnes of fuel a year.

“The IMO has the opportunity to jump-start the investment in new fuels to replace oil by agreeing to implement a global levy and targeted rewards for their use. Negotiators meeting in London should not let this opportunity pass them by.”