The International Association of Dry Cargo Shipowners (Intercargo) is advocating for straightforward and achievable decarbonization measures. Recognizing the dry bulk sector’s efficiency, Intercargo emphasized the importance of practical solutions to ensure the effective implementation of emissions reduction strategies in the shipping sector.

Intercargo said it supports the updated joint proposal by Bahamas, Liberia, and the International Chamber of Shipping (ICS) for a comprehensive “IMO net-zero framework.” The association also backs a simplified pricing mechanism, proposing a flat-rate contribution per tonne of GHG emitted with incentives for zero and near-zero emissions fuels. To provide stakeholders with predictability, Intercargo said it advocates for fixed annual GHG fees over a minimum of five years.

While supporting a well-to-wake approach for emissions accounting, the association has raised concerns about upstream emissions beyond the shipping sector’s control. The association emphasized the need for a thorough review of legal issues and alignment with UN climate fund principles before establishing a decarbonization fund.

Inetercrgo further advocated for a fair distribution of costs, proposing that charterers or commercial operators, as fuel cost bearers, should also cover GHG fees and compliance costs. To reduce the administrative burden on dry bulk tramp shipping, which faces global compliance challenges in accessing green energy sources, Intercargo called for streamlined processes.

“The path to shipping’s decarbonization must be paved with practical, implementable solutions,” said Intercargo’s Secretary General Kostas Gkonis. “Our support for these measures reflects our sector’s commitment to environmental responsibility whilst maintaining operational efficiency and smooth global transportation of essential goods.”

Intercargo stresses the importance of global governmental action and cross-stakeholder collaboration throughout the maritime transport chain to achieve these ambitious goals.