Webinar: Navigating the 6PAC+ Submissions to MEPC82

Event

August 13, 2024 – The webinar “Navigating the 6Pac+ Submissions to MEPC82″ brought together key stakeholders, experts, and policymakers to discuss the proposals submitted by a coalition of small climate-vulnerable states to the International Maritime Organization (IMO).

The webinar, organized by the Micronesian Center for Sustainable Transport (MCST) and hosted by John Taukave, featured distinguished panelists, including Ambassador Albon Ishoda, Marshall Islands Special Envoy for Maritime Decarbonization; Dr. Morgan Wairiu, Pro Chancellor of Solomon Islands National University; Maria Ogbugo, a maritime consultant and senior business executive from Ghana; and Dr. Tristan Smith, Associate Professor at University College London’s Energy Institute.

Ambassador Albon Ishoda’s Opening Remarks

Ambassador Albon Ishoda set the tone for the webinar with a powerful address, emphasizing the critical nature of the upcoming rounds of IMO MEPC82 negotiations. “We stand at a pivotal moment in our collective journey toward a sustainable and equitable maritime future,” Ishoda stated. “Our submissions to the IMO are calls to action, challenging the shipping industry and the powerful states that govern it to take responsibility for the damage caused.”

The submissions, which outline how to deliver the IMO’s 2023 GHG Strategy in a timely and equitable manner and are poised to shape the future of maritime decarbonization, come ahead of the highly anticipated serve-to-inform negotiations during the Maritime Environment Protection Committee’s (MEPC) 82 meeting in September and October. Concretely, these submissions propose a framework for the collection and distribution of revenue to ensure a rapid phase out of fossil fuels, strong incentives for the uptake of long-term solutions, and an unambiguous commitment to a just and equitable transition.

Indeed, Ambassador Ishoda underscored the urgency of agreeing on a levy designed to facilitate a just and equitable transition that leaves no country behind, aligning with the 2023 IMO Strategy to phase out greenhouse gas emissions. “The stakes are high, and time is short,” Ishoda warned, urging immediate action.

IMO CIA Evidence

Dr. Tristan Smith:

Dr. Smith emphasized that the combination of a Global Fuel Standard (GFS) and a universal levy is supported by evidence as the most effective way to achieve a low-cost transition to decarbonized shipping. He referenced the DNV report, which shows that this combination results in the lowest cost of abatement and the least GDP impact over the long term. He pointed out that the levy drives higher energy efficiency across the fleet, which is the cheapest way to reduce greenhouse gas emissions. Additionally, the levy allows for a multi-speed transition, where early adopters can lead the way without imposing undue pressure on the entire industry, thus minimizing economic disruptions.

Maria Ogbugo:

Maria Ogbugo highlighted critical aspects of the GFS/Levy combination, particularly its implications for developing countries. She emphasized the need for capacity building at the highest levels of representation, ensuring that those who advocate for business and policy in international forums do so from a well-informed position. Ogbugo stressed the importance of addressing the cost of representation, especially for vulnerable nations, tying this directly to the concept of a just and equitable transition in the maritime sector. Ogbugo pointed out that the European Union Emissions Trading System (EU ETS) is already affecting the shipping industry, demonstrating that the cost of shipping emissions is a present reality. Crucially, she highlighted that revenue distribution from the levy is vital for supporting projects in developing countries, such as funding for green ships and seafarer training.

Dr. Morgan Wairiu:

Dr. Wairiu supported the adoption of the GFS/Levy combination, emphasizing its importance for protecting the vulnerable ecosystems of Small Island Developing States (SIDS). He agreed with the evidence presented by Dr. Smith that this approach is essential for achieving net-zero emissions by 2050 and aligns with the goal of limiting global warming to 1.5 degrees Celsius. Wairiu stressed that the long-term economic benefits of this approach, as indicated by the evidence, are critical for regions like the Pacific Islands, where the cost of inaction would be far greater.

The transition adds costs, and the levy helps face those costs. Maria flagged concern about increased costs for countries, companies, and communities. EU ETS as an example.

But: countered by the completely different design of IMO Levy as proposed by 6PAC+, this approach would be progressive by levying all emissions and using the majority of revenues to help countries that cannot otherwise invest in clean technology. This will both speed up the transition and lower the cost for such countries.

A key theme that emerged from the discussion was the critical need for global cooperation. The panelists stressed that the challenges of maritime decarbonization can only be effectively addressed through coordinated international action, with developed nations supporting the transition in developing countries.

The webinar concluded with a call to action for all stakeholders to rally behind the 6Pac+ proposals, which are backed by the latest research and evidence. The panelists emphasized the critical need for swift and decisive action to ensure that the maritime industry contributes to a sustainable future, especially for small island developing states that are on the frontline of climate change impacts.

Link to Submissions: https://mcstrmi.org/projects/mepc-82-submissions

Link to the webinar recording: https://www.youtube.com/playlist?list=PLj3Pr9ziP81wpMxZsciK_H8JJzYukaUDU