Panama Canal announces greenhouse gas emissions fee

Speaking this week at the AAPA Latino conference in Colombia, Panama Canal Administrator Ricaurte Vásquez Morales announced the authority’s plan to implement a green vessel classification system that will include a new greenhouse gas (GHG) emissions fee. Financial penalties for shipowners will increase based on the volume of emissions. The fee is intended to help make the canal’s operations carbon-neutral.

Under the new system, all ships over 38.1 m length overall (LOA) will be classified in levels depending on their energy efficiency. Three factors – the ship’s EEDI (Energy Efficient Design Index) score, its use of efficient operational measures such as bow thrusters, and its use of zero-carbon biofuels or carbon-neutral fuels – will determine a ship’s classification level.

Fee amounts and a timeline for implementation have not yet been announced.

Kim Biggar

Kim Biggar started writing in the supply chain sector in 2000, when she joined the Canadian Association of Supply Chain & Logistics Management. In 2004/2005, she was project manager for the Government of Canada-funded Canadian Logistics Skills Committee, which led to her 13-year role as communications manager of the Canadian Supply Chain Sector Council. A longtime freelance writer, Kim has contributed to publications including The Forwarder, 3PL Americas, The Shipper Advocate and Supply Chain Canada.
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