rss icon Subscribe
desktop mobile

Trafigura Proposes Carbon Levy on Marine Fuels

© Igor Groshev / Adobe Stock

Commodities trader Trafigura on Friday proposed a carbon levy of $250-$300 per tonne of carbon-dioxide (CO2) equivalent on shipping fuels to make zero and low carbon fuels more economically viable and competitive.

The International Maritime Organization (IMO) wants to halve the sector's greenhouse gas output by 2050 against 2008 levels. If left unchecked, it says, global emissions from shipping could balloon by up to 130% by 2050, compared to 2008 levels.

"We believe that only through the introduction of a significant levy on carbon-intensive fuels can sufficient progress be made towards the decarbonization of the global shipping industry," Trafigura said in a research paper published on its website.

The revenue raised by the levy would be used to subsidize and incentivize low and zero carbon fuels, funding the research and development of alternative fuels and, in part, developing countries with the energy transition to mitigate the impact of climate change, Trafigura said.

Carbon emissions from shipping rose in the six-year period to 2018 and accounted for 2.89% of the world's CO2, amid growing pressure on the industry to bring levels down.

"It is now time to put a price on carbon emissions in the shipping industry in the form of a global, mandatory industry levy," the paper said.

Trafigura, which is responsible for more than 4,000 ship voyages per year, acknowledged that a carbon will have an immediate effect on shipping costs which companies would bear.

"This increase in operational costs will spur charterers to change behavior to reduce emissions, charter more efficient ships and switch to lower carbon fuels," Trafigura said.


(Reporting by Roslan Khasawneh; editing by David Evans)

Sep 25, 2020

 

Fuels & Lubes

Canadian Nuclear Laboratories Studying Maritime Decarbonization Technology

© Adam / Adobe Stock

Canada’s premier nuclear science and technology laboratory is examining opportunities to reduce

Costa Cruises Completes Italy's First LNG Bunkering

Costa Smeralda loads LNG fuel from the bunkering vessel Coral Methane in the port of La Spezia. (Photo: Costa Cruises)

Carnival Corporation's Costa Cruises brand said its liquefied natural gas (LNG)-powered flagship

Danish Consortium Developing Ammonia-fueled Engine

© ibreakstock / Adobe Stock

Innovation Fund Denmark, the Danish investment entity, has announced the establishment of a

emissions

Cargill Looks to Use Wind to Cut Carbon in Shipping

(Photo: Cargill)

Cargill, one of the world's biggest charterers of ships, is working with technology partners to

Canadian Nuclear Laboratories Studying Maritime Decarbonization Technology

Canada’s premier nuclear science and technology laboratory is examining opportunities to reduce greenhouse gas emissions and other pollutants from marine vessels in Canada.

Op/Ed: Considering Alternative Energy Sources for Ships

© a_medvedkov / Adobe Stock

Hydrogen or battery technologies? Strict regulations force shipowners to consider alternative

Maritime Apps