A proposed measure to tax international shipping, seen as part of a broader climate package, is expected to raise funds for the climate agenda. It is anticipated that at the upcoming International Maritime Organization meeting at the start of July, member countries will explore targets to decarbonize a sector responsible for about 2.9% of global greenhouse gas emissions.
The idea of levying taxes on maritime transport is not new. It has been debated for years with little consensus among nations because, as climate adviser Javier Andaluz of Ecologistas en Acción notes, there is considerable resistance within the industry and the path forward will not be simple.
Nonetheless, experts see a real push toward a tax, with initial figures suggesting a levy starting at $100 per tonne of CO2. The proposal gained political traction after gaining prominence at COP27, when proponents argued that the funds could help finance a loss and damage fund that several countries pledged to create at the United Nations climate conference in Sharm el-Sheikh last December.
World Bank projections indicate that a shipping carbon tax could generate an annual revenue in the range of 50 to 60 billion dollars, money that would support climate resilience efforts in the most vulnerable nations. Wealthier states responsible for much of the warming have committed to aid and are seeking new ways to raise funds.
more support
Support for the measure continues to grow. At a recent Paris summit, French President Emmanuel Macron and Barbadian Prime Minister Mia Mottley led calls for a new global financial arrangement, with more than twenty countries expressing backing for the shipping tax, according to the presidency.
Countries listed as supporting include Denmark, Norway, Cyprus, Spain, Slovenia, Monaco, Georgia, Vanuatu, South Korea, Greece, Vietnam, Lithuania, Barbados, the Marshall Islands, Solomon Islands, Ireland, Mauritius, Kenya, the Netherlands, Portugal, New Zealand, and the European Commission.
The maritime transport sector, despite its significant role in the climate crisis and emissions that exceed those of international aviation, has historically been exempt from paying pollution costs under frameworks like the European emissions market. The regime’s reform, enacted as part of the Fit for 55 climate package, requires ships to obtain permits for emissions, covering both intra-EU voyages and voyages to or from non-EU ports.
As this precedent develops, analysts hope that during the London meeting set for July 3–7, IMO members will agree to implement a global carbon tax on ships and raise emissions reduction targets for 2030 and 2050.
Currently, the IMO has set a target to cut greenhouse gas emissions from ships by 50% by mid-century, a goal some environmental groups say is not aligned with the Paris Agreement’s ambition for carbon neutrality as soon as possible. Ocean Care, a focused environmental NGO, notes this tension and urges stronger action.
Ocean Care analyst Carlos Bravo points out that this year could be pivotal. He argues that beyond reforming the European market, the global biodiversity framework agreed at COP15 in Montreal last December and the Offshore Agreement adopted in March could positively influence the negotiations unfolding at the United Nations.
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