REDUCTION OF GHG EMISSIONS FROM SHIPS

The submission by CSC to the IMO's 77th session argues for a robust carbon pricing mechanism for international shipping that avoids offsets and exemptions. It proposes a high carbon price—potentially $400/tonne or more in this decade—to bridge the gap between fossil and zero-carbon fuels and drive rapid decarbonization. The document emphasizes that revenues should be used for climate rebates to vulnerable nations, such as low-income small island developing States (SIDS), and for investing in zero-emission infrastructure. It further asserts that global IMO measures must not undermine more ambitious regional regulations, such as the EU's plan to include shipping in the EU ETS.

• To effectively bridge the price gap between fossil and zero-carbon sustainable fuels, carbon prices may need to exceed $416/tonne by 2050. The document suggests that prices of $400/tonne or more in the current decade should be considered to generate a result commensurate with the climate emergency.
• The shipping sector's carbon budget should be managed to reach zero emissions well before 2050, ideally by 2040, to align with the 1.5°C target. A modest carbon price of $100/tonne of CO2e could potentially reduce emissions by 13% by 2030 through speed reductions or investments in wind power.
• Revenues from carbon pricing should be used for two primary purposes: providing rebates to countries most at risk from climate change (specifically low-income small island developing States) and funding in-sector decarbonization, such as shoreside electrification and R&D for sustainable marine fuels.
• The use of offsets, free allocations of permits, and generous exemptions must be avoided because they create climate loopholes, lead to windfall profits, and undermine the environmental integrity of the system. Specifically, the document notes that only 2% of projects under the UN's Clean Development Mechanism (CDM) were likely to be additional.
• Global IMO measures should not supersede or water down more ambitious regional regulations. The document cites the EU's proposal to include international shipping in the EU ETS as an example of a more ambitious measure that should be preserved.
• Carbon pricing alone is insufficient for full decarbonization; it must be accompanied by complementary policies such as zero-GHG-fuel standards, stringent energy efficiency targets, and the reduction of ship speeds.

APA

Carbon Market Watch (2021). REDUCTION OF GHG EMISSIONS FROM SHIPS. https://carbonmarketwatch.org/wp-content/uploads/2021/11/MEPC-77-7-17-Principles-for-market-based-measures-CSC.pdf

Chicago

Carbon Market Watch. REDUCTION OF GHG EMISSIONS FROM SHIPS. 2021. https://carbonmarketwatch.org/wp-content/uploads/2021/11/MEPC-77-7-17-Principles-for-market-based-measures-CSC.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=REDUCTION OF GHG EMISSIONS FROM SHIPS |date=17 September 2021 |url=https://carbonmarketwatch.org/wp-content/uploads/2021/11/MEPC-77-7-17-Principles-for-market-based-measures-CSC.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2021reduction, author = {{Carbon Market Watch}}, title = {{REDUCTION OF GHG EMISSIONS FROM SHIPS}}, publisher = {Carbon Market Watch}, year = {2021}, month = sep, url = {https://carbonmarketwatch.org/wp-content/uploads/2021/11/MEPC-77-7-17-Principles-for-market-based-measures-CSC.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }