IMO Considers Carbon Pricing for International Shipping
Member states of the International Maritime Organization (IMO) will discuss a carbon price on international shipping – the world’s first global pricing of emissions on any sector – at the 83rd session of the Marine Environment Protection Committee (MEPC 83) meeting in London this week.
However, there are enough powerful nations – including the US – who are against the concept, suggesting no universal levy will be agreed upon.
A compromised text proposed during last week’s greenhouse gas (GHG) working group meeting excludes a universal levy and includes tiered GHG fuel intensity requirements instead.
“I have real concerns that the package being shaped may not be one that truly protects the most vulnerable or ensures no one is left behind,” commented Albon Ishoda, the Marshall Islands’ special envoy for maritime decarbonisation.
The package being shaped may not truly protect the most vulnerable
The IMO promised to adopt an economic measure as a way to deliver its agreed emission cuts: 30% by 2030, 80% by 2040, to reach zero by 2050.
A study by UNCTAD, commissioned by the IMO, found that a levy of $150 to $300 a tonne of greenhouse gas, if designed correctly, is the best way to minimise the economic impacts of shipping decarbonisation on global GDP growth, and to promote global economic equality.
Bastien Bonnet-Cantalloube, an expert on transport decarbonisation at Carbon Market Watch, said: “While nations strive for fair and equitable shipping emissions cuts, IMO talks risk going nowhere. Governments must step up to ensure all GHG emissions are priced, as there is a need to refocus efforts on the levy championed by the majority.”