Seven Greek shipowners attack the IMO with Maria Angelikousis as "leader"

A group of the world's largest and most important shipowners has expressed "serious concern" about the direction of talks at the IMO (International Maritime Organization) in London this week, which aim to decarbonize shipping by 2050.

Six of the largest Greek shipowners, led by the Angelikousis Group , warned that current proposals could lead to the support of innovative low-carbon fuel programs and a doubling of fuel costs.

This high-profile intervention comes just hours after the US unexpectedly withdrew from the talks and threatened economic retaliation against IMO members who support a global carbon tax.

Speaking on behalf of the shipowners, Maria Angelikoussis , CEO of Angelikoussis Group, told TradeWinds: “We believe that the recent decision by the US to withdraw from MEPC 83 highlights the challenges of promoting unknown and untested alternatives, while at the same time requiring huge sums of money, in the order of $100 billion or more per year, as a consequence of the overly aggressive and unrealistic GHG emission reduction proposals.” 

She added that “given the current serious trade war, this is an unfortunate time to be holding these negotiations.”

The initiative led by the Angelikousis Group is supported by the companies GasLog of Petros Livanos, Latsco of the Latsis family, Thenamaris of the Martinos family, Dynacom of George Prokopios, TMS of George Economou and Alpha Gas of Anna Angelikousis-Kanellaki.

In a statement to TradeWinds, the “big seven” shipping companies underlined their desire for “fit-for-purpose policy measures that provide the market with the right signals needed to decarbonize the shipping sector.”

Angelikoussi said she supports a mechanism that will be fair and balanced across all sectors of shipping, "focused on achieving objectives in the safest and most efficient way, without raising funds beyond what is required."

The six shipowners expressed their "serious concern" about the current IMO negotiations, and are working together to warn other shipowners and shipping users of the risks they believe exist.

In particular, they warned of proposed penalty regimes for LNG and biofuel blends that would add costs to what they see as “the only effective low-carbon fuel options available.”

Broadly speaking, there are three options on the IMO table: a high carbon tax, a lower tax, and a compromise solution based on a more complex credit system.

Greek shipowners warned that the SU/RU system with prices ranging from $50 to $600 per ton of CO2 equivalent will cause huge costs to the industry.

"This translates into a doubling of fuel costs for conventional ships by 2030 or a quadrupling by 2040, with the total funds raised by the IMO reaching $100 billion or more, significantly above what is required," they said.

Analysis by experts at the University of London's UCL Energy Institute suggests that only a high tax could bring about market changes to meet the clean energy target by 2050, while a credit system would favour and potentially entrench LNG and biofuels in the long term. Climate scientists argue that this would be the wrong policy.

Traditionally conservative Greek shipowners have begun to participate in the energy transition in recent years.

Many of them have invested significantly in LNG carriers and have begun investing in LNG dual-fuel options for other ships.

“What will support the shipping industry is a stable regulatory framework that leverages existing infrastructure and the best available options, such as LNG and biofuels, while enabling the development of sustainable and scalable low-emission alternatives,” said Angelikousi.

"As shipowners, we will be at the forefront of implementing changes to our fleet and operational activities. It is of utmost importance to have realistic goals for the shipping industry that are practical, consistent and achievable." 

source: skai.gr