Maersk Mc-Kinney Center calls for marine fuel levy

Maersk Mc-Kinney Center calls for marine fuel levy

London, 25 October (Argus) — The shipping sector will not be able to reach net zero emissions by 2050 without a fuel levy to encourage the use of alternative bunkers, according to the Maersk Mc-Kinney Moller Center for Zero Carbon Shipping.

The group has identified five "critical levers" that must be applied to make net zero a reality, the most important of which is policy and regulation. To level the economic playing field between current and future marine fuels, regulation is needed as market forces will not drive decarbonisation alone, it said. The group suggests that a flat levy of $230/t of CO2 implemented in 2025 would close the price gap and also generate around $4 trillion to go towards decarbonisation.