Bloomberg News

Ship Owners Group ICS Has Concern About Lagarde Climate Comments

July 17, 2012

The International Chamber of Shipping, representing owners of 80 percent of the merchant fleet, said it has concerns about comments last month by International Monetary Fund Managing Director Christine Lagarde.

Shipping and aviation can raise about 25 percent of the $100 billion needed to meet climate adaptation and mitigation in developing nations, Lagarde said in a speech last month that’s posted on the IMF’s website.

The nature of shipping means the industry needs global regulations, ICS Chairman Masamichi Morooka said in a July 13 letter to the IMF that the shipping group published today. Those are difficult to create and enforce, partly because they need to dovetail with United Nations climate-change rules, the trade group said. Owners could also re-register vessels in countries where charges didn’t apply, thereby avoiding the levies, according to the ICS.

“The remarks in your speech give rise to serious concerns because they appear to ignore the major impediments to adopting the charges on shipping that you suggest,” Morooka wrote.

To contact the reporter on this story: Alaric Nightingale in London at

To contact the editor responsible for this story: Stuart Wallace at

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