The International Chamber of Shipping (ICS), which represents 80% of the merchant fleet, is proposing the creation of a fund whose objective is to reduce the price differential between current high-carbon fuels and new greener (but more expensive) fuels and to accelerate the development and production of alternative fuels and the necessary infrastructure.

In order to reach the net-zero GHG level in 2050, these new fuels should start to be available as early as 2030 (ICS target: 5%).

This fund would be financed by mandatory contributions, levied at a fixed rate on each ton of GHG emitted by ships (progressive contribution up to typically 100 US $ / t). In return, the accumulated funds, up to several billion dollars annually, would be used to reward ships that have avoided GHG emissions by using eligible alternative fuels.

For example, a ship powered by ammonia (or other options such as methanol, hydrogen, biofuels and synthetic fuels) could receive an offset of over $1.5 million.

This fund proposal by ICS will be discussed after COP27 and before the next meeting of the IMO Marine Environment Protection Committee in London.

Similar measures are being considered in some parts of the world, notably in Europe via the EU-ETS.