The International Maritime Organization (IMO) is on the cusp of striking the world’s first global carbon pricing deal for any industry. “If that happens, it’ll be a major milestone for climate policy and a turning point for shipping,” said World Shipping Council President & CEO Joe Kramek. To succeed, the measure must help bridge the price gap between fossil fuels and cleaner alternatives, including zero and near-zero (ZNZ) fuels. That’s essential to drive investment in green energy and fuel supply, and to build the economies of scale needed to reduce cost over time. However, key elements of the agreement remain to be resolved – which will determine how effective the agreement will be in delivering a regulatory regime that enables an energy transition in the global fleet. “A key issue still to be resolved is how and what green fuels will be incentivised from the revenue generated by the proposed measure. If those decisions aren’t made this week, the fuel market and fuel buyers won’t have any clearer signal to invest,” said Bryan Wood-Thomas, WSC’s lead IMO representative and Vice-President for Environment and Climate. (....)