We welcome the progress made during these intensive negotiations to achieve net zero emissions from shipping, and the support received from around 60 Member States for a flat rate contribution system per tonne of GHG. The purpose of the proposed system, put forward by the International Chamber of Shipping (ICS), is to reduce the cost gap and incentivise the accelerated uptake of green marine fuels, as well as providing billions of dollars to support the maritime GHG reduction efforts of developing countries.

We have gained a better understanding of the concerns of those governments who still have questions about our proposed feebate mechanism. ICS will seek to address these concerns with all governments before the next round of IMO negotiations in September, to help ensure that the necessary regulatory framework can be adopted next year, for global implementation by 2027.

ICS is also delighted to see the following positive outcomes from the meeting, and are proud to have contributed to these:

Adoption of the Interim guidance on the application of the Ballast Water Management Convention to ships operating in challenging water quality conditions.

Approval of the guidelines for the sampling of fuel oil for determination of compliance with MARPOL.

Establishment of the correspondence group on onboard carbon capture and storage.

Adoption of draft amendments to the 2021 Guidelines on the overridable shaft/engine power limitation systems.

Agreement to progress discussions with the Basel Convention Secretariat to establish the Hong Kong convention as the pre-eminent international convention on ship recycling.

As a co-sponsor, ICS was disappointed to see that the proposed resolution clarifying the current status of the Carbon Intensity Indicator (CII) rating system did not receive sufficient support from Member states. However, we were heartened to see wide acknowledgement of the need to address the irregularities that have emerged. This heightened awareness is a positive outcome for the ongoing CII review as it is vital we have a workable system to ensure the industry reduces emissions. ICS trusts that all delegations can work towards an improved CII system that incentivises correct behaviours and fully aligns with the objectives of the 2023 IMO GHG Strategy.