Shipping Emission Meeting Could Usher in World’s First Global Carbon Tax
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A decision on whether to impose a carbon tax on ship emissions will be made Friday by many of the world’s leading maritime nations.
Agreement among the 174 members of the International Maritime Organization present – essentially the entire body excluding the U.S. – would establish the world’s first global carbon tax.
The previous day, delegates approved a proposition to establish an emissions control zone in the North-East Atlantic Ocean, a move lauded by environmental advocates at the meeting.
The International Maritime Organization, the regulator of international shipping, has set a goal for the industry to achieve net-zero greenhouse gas emissions around 2050 and has pledged to support fuels that produce zero or near-zero emissions.
However, as the final day of meetings commences, delegates continue to debate the specifics of a potential tax on shipping emissions. Throughout the week, the Marine Environment Protection Committee has convened in London and intends to reach a final decision later today.
A key point of contention is the method of charging the tax. Over 60 nations participating in the negotiations are advocating for a straightforward tax based on emissions per metric ton. These nations are primarily led by Pacific island countries, whose very existence is threatened by climate change.
Other nations possessing significant maritime fleets – notably China, Brazil, Saudi Arabia, and South Africa – favored a credit trading system instead of a set levy. Still others sought a middle ground between the two approaches.
According to Mark Brownstein, who heads the Environmental Defense Fund’s global energy program, the maritime industry cannot afford to fail in making significant progress on decarbonization.
“This industry witnesses the effects of climate change daily and cannot easily ignore it,” he stated.
Instead of participating in the London negotiations, the United States urged other governments to reject the proposed greenhouse gas emission measures. The Trump administration stated that it would oppose any attempts to impose economic penalties on its ships based on emissions or fuel choices, arguing that this would burden the sector and cause inflation. It warned of possible retaliatory measures if any fees are imposed.
Shipping emissions have risen in the past decade as ships have grown larger, transporting more cargo per trip while consuming enormous quantities of fuel.
Last week, IMO Secretary-General Arsenio Dominguez stated that the meetings would, “set the course for a net-zero future for the maritime sector.”
Any new regulations could be formally adopted in October and implemented by 2027.