The United States’ formal rejection of the International Maritime Organization’s (IMO) proposed net-zero framework for the shipping industry led coverage at Splash this week.
This framework, which includes carbon levies and fuel standards, aims to significantly reduce greenhouse gas emissions from ships by 2050. The US administration views this plan as a “global carbon tax on Americans” that would unfairly benefit countries like China and impose considerable costs on American consumers.
While the US threatens retaliation if the measures are adopted, other experts suggest that the IMO’s port state control enforcement mechanisms might still compel international compliance, even from US-flagged vessels trading globally. However, the US stance creates uncertainty for shipowners and could potentially complicate or delay the IMO’s decarbonisation efforts.
“Confidence matters more than rhetoric in shipping as without clear, enforceable rules, shipowners can’t responsibly future-proof their fleets, and decarbonisation will remain as just a costly exercise in risk management,” broker SSY noted in a recent markets update.
Other big news this week came out of Israel, where reports emerged that ZIM CEO Eli Glickman is teaming up with Israeli shipping magnate Abraham Unger in a bid to take the Israeli containerline private.
Finally, if you haven’t read it yet, check out our big Maritime CEO interview with José Miguel Bermúdez, the CEO and co-founder of bound4blue, a suction sails specialist.
“Right now, shipping is working with a patchwork of isolated solutions,” Bermúdez told us. “The next step forward will be making these systems work together to improve overall efficiency, which will directly translate into emissions reductions and cost savings.”
To gain greater insights into the US stance on international shipping environmental legislation, check out the latest edition of the Splash Wrap podcast below.
