Shipping industry calls for “market-based” solutions to climate change

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A coalition led by the International Chamber of Shipping said that President Joe Biden and other world leaders need to consider market-based solutions to mitigate climate change and to decarbonize the shipping industry.


By Michael McGrady, Maritime Direct Americas & Pacific Correspondent

LONDON — The International Chamber of Shipping (ICS) wants the Biden administration and other world governments to take on climate change by using market-based solutions to fighting climate change and working to decarbonize the shipping industry.

President Joe Biden announced his Leaders’ Summit on Climate leading the world’s major shipping trade groups to call on world leaders to urgently “examine the role of market-based measures” to ensure “ambitious decarbonization targets are met across the entire shipping segment.” ICS and other shipping bodies have submitted a proposal to the International Maritime Organization calling for the chief UN regulatory body to discuss market-based solutions. “These measures will be critical to incentivize the transition of the global fleet to new fuels and technologies, which will be more expensive than those in use today.”

“The decarbonization of international shipping will depend on out-of-sector stakeholders developing market-available zero-carbon technologies and fuels, and the maritime sector will need the technologies to use these,” the ICS said, citing the involvement of other organizations like BIMCO, CLIA, and the World Shipping Council. “The urgency of the challenge requires leadership and a properly coordinated approach to catalyze and incentivize the transition to zero-emissions sector.”

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