Shipping carbon tax could increase H2 demand
1 min read

Shipping carbon tax could increase H2 demand

The demand for green hydrogen and its derivatives would increase massively in the coming years if the UN’s International Maritime Organization (IMO) adopts a proposal for a global carbon fuel tax on the shipping industry.

While the IMO has a target of cutting greenhouse gas emissions from the maritime sector by 50% by 2050 (compared to 2008 levels) — a goal that could be increased in a forthcoming July meeting — it has been hard to see how it would get there, given that today’s carbon-rich heavy fuels are much cheaper than cleaner alternatives, such as renewable hydrogen, ammonia and methanol.

However, last week, a revised proposal of a “Fund and Reward” carbon tax was submitted by the International Chamber of Shipping — a trade body representing about 80% of the world’s merchant fleet — that seeks to charge shipowners $50 per tonne of fossil-derived marine fuel oil.

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