A new report from the Global Centre for Maritime Decarbonisation (GCMD) finds that a carbon price of $380 per tonne of CO2 equivalent is not enough to push shipping operators toward low-carbon fuels. The analysis suggests that a penalty price of $700 per tonne would trigger real fuel switching. The report also highlights that ammonia's extra costs for safe handling and bunkering erode its cost advantage over green methanol. The findings come ahead of the IMO's MEPC85 meeting, where the design of a maritime carbon pricing mechanism will be discussed. GCMD's chief executive argues that any carbon price is better than none, but the numbers show that a weak price signal will not move the industry. The report underscores the need for a sufficiently high price to make alternative fuels economically viable at scale.
