BIMCO, one of the world’s largest shipping associations, is encouraging states and the industry to start a dialogue on how to create a global ruleset for market-based measures (MBM) to support the use of low carbon fuels and to create a level playing field for the industry.
“One way we can make the current low emission technologies competitive with traditional fuels is through some form of market-based measure. We need a mechanism that equalises the cost between using low carbon fuels and traditional fossil fuels,” said BIMCO president Sadan Kaptanoglu, one of the most famous names in Turkish shipowning circles.
We need a mechanism that equalises the cost between using low carbon fuels and traditional fossil fuels
BIMCO stressed that market-based measures for shipping should be governed by global rules, saying the industry should not be forced to pay for its carbon emissions multiple times. This is relevant if market-based measures are being implemented regionally as, for example, has been announced by the European Commission.
The International Maritime Organization would serve as a good platform for the debate on a ruleset, according to Kaptanoglu.
The support for some form of globally regulated market-based measures was debated and agreed at BIMCO’s board of directors meeting in late January 2021.