The UCL Shipping and Oceans Research Group has provided an initial assessment of the 22nd Intersessional Working Group on GHG emissions, convened by the International Maritime Organization (IMO). The meeting, which concluded in London, saw considerable discussion on the proposed Net Zero Framework for shipping.
A key outcome highlighted by UCL was the broad support among member states for a centralized system to collect revenues. This system would be operationalized through a greenhouse gas (GHG) price, referred to as a remedial unit (RU) price. The collected funds are intended to incentivize early adoption of decarbonization technologies and support a just and equitable transition for all member states.
For freight forwarders and supply chain analysts, the ongoing development of a GHG pricing mechanism by the IMO signals potential future cost implications for ocean freight. The introduction of a carbon price, similar to the EU ETS, will likely lead to increased bunker surcharges or other fees passed on by carriers to shippers. This could impact overall shipping costs and require forwarders to factor these environmental levies into their rate calculations and client quotations. The "high uncertainty" mentioned by UCL suggests that the exact structure and timing of these charges remain unclear, making long-term financial planning challenging for the industry.
