SIMIC

"We believe that only through the introduction of a significant levy on carbon-intensive fuels can sufficient progress be made towards the decarbonisation of the global shipping industry," said the company statement.

In 2018, IMO announced a strategy to reduce emissions intensity by 40 per cent compared to 2008 levels by 2030, and by at least 70 per cent by 2050, as well as reducing total emissions by 50 per cent by 2050.

"Trafigura proposes that the IMO introduce a ¡®partial 'feebate' system ¨C a self-financing system ¨C where, when a fuel is used that has a carbon dioxide equivalent (CO2) intensity above an agreed level, a levy is charged, and where a fuel is used that has a CO2 profile below the level, a subsidy is provided," the company said.

"To change the industry and achieve this evolution, the world's governments, shipowners and charterers urgently need to work with the IMO to agree and implement a levy on carbon intensive fuels, and to subsidise the use of low and zero-carbon alternatives. In addition to subsidising zero- or low-carbon fuels, the revenue raised from this levy could be partly used to fund further research and development into alternative fuels.