The International Maritime Organization (IMO) Marine Environment Protection Committee (MEPC) is poised to approve key “mid-term Greenhouse Gas (GHG) reduction measures” as part of its net-zero framework. These measures align with the objectives outlined in the 2023 IMO Strategy on the Reduction of GHG Emissions from Ships, supporting the transition of international shipping towards net-zero emissions by approximately 2050. The mid-term measures, expected to be approved during the 83rd session, are set for formal adoption in October 2025.
A central component of these measures is a goal-based marine fuel standard, which mandates the phased adoption of fuels with lower GHG intensity. Additionally, a global maritime GHG emissions pricing mechanism is proposed, incorporating economic instruments such as a carbon levy or fuel tax on marine fuels. This approach aims to incentivize the use of lower-carbon alternatives by linking fuel costs to their environmental impact.
As the only representative of the freight forwarding and logistics industry at the IMO, FIATA has submitted a document outlining crucial considerations regarding the carbon levy’s implementation and its potential effects on freight forwarders. This submission, developed by FIATA’s Working Group Sea, seeks to ensure a fair and balanced transition within the maritime supply chain.
Key points raised by FIATA include:
- Potential Cost Increases: Carbon levies could lead to higher costs for freight forwarders and end customers due to cost transfers within the supply chain.
- Effectiveness Concerns: Passing costs down the supply chain may dilute the levy’s intended impact, which is to incentivize shipowners and operators to reduce emissions.
- Challenges for MSMEs: Micro, small, and medium enterprises (MSMEs) may face disproportionate financial burdens, necessitating targeted support.
- Implementation Oversight: Careful management of carbon levy introduction is essential to minimize unintended disruptions.
- Stakeholder Impact Assessments: Thorough assessments should be conducted to understand the levy’s effects across all sectors, with a particular focus on MSMEs.
- Transparency and Information Sharing: Clear communication and access to information are critical for an equitable transition to lower-carbon fuels.
FIATA remains committed to supporting the maritime sector’s sustainability transition while ensuring freight forwarders’ interests are safeguarded throughout this transformative shift.
