Proposed Legislation on World Ocean Day
On World Ocean Day, members of the U.S. Senate and House of Representatives introduced legislation aimed at reducing emissions from ships traveling to U.S. ports and while anchored. Inspired by the European Union’s FuelEU Maritime initiative, these lawmakers are seeking to tax and limit carbon-based fuels, addressing concerns that the International Maritime Organization’s (IMO) efforts have been insufficient.
The shipping industry fears that a mix of inconsistent legislation may make global operations increasingly challenging. Senator Sheldon Whitehouse of Rhode Island, one of the bill’s sponsors, emphasized the need for sustainable shipping technologies and a reduction in dirty fossil fuels to protect marine life and port communities.
The Clean Shipping Act of 2023
The Clean Shipping Act of 2023, introduced by Senator Alex Padilla and supported by Congressman Robert Garcia, aims to reduce greenhouse gas emissions in the shipping industry by establishing carbon intensity standards for fuel. The bill requires lifecycle carbon dioxide-equivalent reductions of 20% by 2027, 45% by 2030, 80% by 2035, and 100% by 2040, following the 1.5°C Paris climate agreement decarbonization pathway. It also aims to eliminate in-port ship emissions by 2030.
Congressman Garcia described The Clean Shipping Act of 2023 as a strong, necessary step to make maritime ports greener and address the global climate crisis.
The International Maritime Pollution Accountability Act
Additionally, Senator Whitehouse introduced the International Maritime Pollution Accountability Act, which proposes a pollution fee on large marine vessels, over 10,000 gross tons, offloading cargo at U.S. ports. This fee would primarily affect international shipping and drive industry-wide decarbonization efforts while encouraging the development of cleaner maritime fuels.
The proposed legislation includes a $150 per ton fee on carbon emissions from fuel burned during inbound trips and fees for nitrogen oxides, sulfur dioxide, and particle pollution. The sponsors estimate that these fees would raise approximately $250 billion over ten years, providing essential funding for the maritime economy’s decarbonization efforts.
A Greener Future for the Shipping Industry
The revenues collected from the pollution fees would contribute to modernizing the Jones Act fleet with low-carbon vessels, revitalizing and electrifying U.S. shipbuilding, and reducing pollutants in American port communities and oceans. Ultimately, this legislation seeks to steer the global shipping industry towards a more sustainable, environmentally conscious future that benefits both the environment and the communities surrounding ports.
