If adopted in their current form, provisions within the International Maritime Organization’s (IMO) Net-Zero Framework are expected to generate $11-12 billion in annual revenues. In addition to supporting the energy transition through rewards for zero- and near-zero-emission fuels, the revenue is expected to help the maritime sector ensure a just and equitable transition by establishing a global climate fund specifically for international shipping.
However, questions remain about the legitimacy, efficiency, and equity of such a fund.
A new insight brief for the Getting to Zero Coalition, ‘Delivering a just and equitable transition: Alternatives for effective and credible management of shipping’s climate funds’, dives into these questions by examining some of the options currently under consideration.
Among other things, the brief considers the different implications of design choices around recipients, impact areas, and financial instruments. It also offers informed considerations on how an IMO fund can support a just and equitable transition, concluding that a blended approach paired with tailored instruments is most likely to build the political and market confidence the maritime industry needs to scale zero-emission solutions globally.
Read it here.