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IMO in the spotlight at first post-COP26 MEPC meetingIMO in the spotlight at first post-COP26 MEPC meeting

As the IMO opens its virtual doors to MEPC 77 in London today, one key question is whether the $5bn R&D fund will get the go-ahead this week.

Paul Bartlett, Correspondent

November 22, 2021

2 Min Read
MEPC73 IMO Sec Gen Lim
Kitack Lim at MEPC 73Photo: IMO Flickr

Leading industry figures have stressed the importance of the fund which could assist some 260 projects waiting to go ahead, according to Valentina Keys, Senior Associate, Environment and Sustainability at London law firm, WFW.

She was speaking at a webinar organised by WFW last week. Other participants included Michael Parker, Chairman of Citi’s Global Shipping, Logistics and Offshore business, and Bud Darr, EVP Maritime Policy and Government Affairs at MSC Group. Lindsey Keeble, WFW Global Maritime Sector Head, moderated the online event.

Speaking for shipowners, Darr was emphatic. “There are zero of the net-zero fuels available at scale today and we’re talking about a five-year timeframe here to get something going.”

Referring to the R&D fund proposed by the industry to the IMO, Darr said: “Just do it. Let the industry pay for the R&D fund that we’re asking for. Step aside, give us the framework. Let us pay.”

There are now 175 IMO members, Darr pointed out, requesting that Governments should get over their political differences and help the industry solve a real practical [fuel] problem. “Us, as the shipowners, we want to get there, work with us and help us do it. One way to do that is help us set a global carbon pricing mechanism and implement that through a workable market-based mechanism.”

Related:IMO MEPC must back $5bn R&D fund industry proposal next week

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Earlier in the webinar, Darr had stressed the importance of continuing research into all possible future fuels. The equipment is not the main issue, he said, because ships can already be built to run on different fuels, such as methanol, bio- or synthetic LNG.

“But actually having those alternative fuels – whether it’s green methanol, synthetic or bioLNG, green ammonia or green hydrogen, that’s going to be where the real challenge is …” he said. “… not only developing the fuels and bringing them to the marketplace and for shipping to be able to compete for those. If we think they’re good energy-carrier ideas, there’s going to be a lot of other energy users out there that are going to need them.

“That part upstream I think is really important – from production to actual delivery to where the ships are,” he continued. “It really needs a lot of help from governments to get there … but remove the political obstacles between themselves that really have nothing to do with an R&D fund, and agree to set up the infrastructure and let shipowners begin funding it,” he said.

“We’re already working on a wide range of fuels, but they won’t be at the scale to solve the problem for the whole industry if they’re not done on a broader scale than company by company. So, we really do need to pool our efforts and our resources here.”   

Related:Positive COP26 shipping outcomes, can the IMO step up next week?

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About the Author

Paul Bartlett

Correspondent

UK-based Paul Bartlett is a maritime journalist and consultant with over four decades of experience in international shipping, including ship leasing, project finance and financial due diligence procedures.

Paul is a former Editor of Seatrade magazine, which later became Seatrade Maritime Review, and has contributed to a range of Seatrade publications over the years including Seatrade’s Green Guide, a publication investigating early developments in maritime sustainability initiatives, and Middle East Workboats and Offshore Marine, focusing on the vibrant market for such vessels across that region.

In 2002, Paul set up PB Marine Consulting Ltd and has worked on a variety of consultancy projects during the last two decades. He has also contributed regular articles on the maritime sector for a range of shipping publications and online services in Europe, Asia, and the US.

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