The Institute of Marine Engineering, Science and Technology (IMarEst) has published an analysis evaluating various options for the International Maritime Organization's (IMO) proposed Net Zero Framework (NZF). The primary conclusion drawn from this research is that a framework incorporating a levy on emissions would be the most effective mechanism for the IMO to achieve its ambitious greenhouse gas emission reduction targets for 2030 and 2040.
This analysis comes ahead of the 22nd Intersessional Working Group on GHG Emissions on Ships (ISWG-GHG 22), scheduled for September 1-4. IMarEst has provided its detailed findings to the IMO, intending to assist delegates in their assessment of the efficacy of the different decarbonization measures currently under consideration.
For freight forwarders and logistics professionals, the adoption of a levy-based mechanism by the IMO could lead to increased operational costs for ocean carriers, which would likely be passed on to shippers through higher freight rates. This potential increase in costs could influence future budgeting and procurement strategies for ocean freight services. Forwarders should monitor the outcomes of the ISWG-GHG 22 meeting closely, as any decisions regarding carbon pricing or levies will directly impact the economic viability of maritime transport and could necessitate adjustments to supply chain planning and carrier selection.
