The global shipping industry is bracing for intense negotiations at the upcoming International Maritime Organization (IMO) meeting in September. The primary focus will be on implementing a carbon levy to reduce greenhouse gas (GHG) emissions from shipping.
The International Chamber of Shipping (ICS) has proposed a two-pronged approach: a carbon fee and a reward system to incentivize the development and use of low-emission fuels.
The collected funds would also support developing countries in their efforts to reduce emissions.
However, the proposal has been met with criticism from the 6PAC+ alliance of Small Island Developing States, who advocate for a significantly higher carbon levy of $150 per tonne.
They argue that this would accelerate the transition to clean fuels and ensure a fair distribution of costs.
As the shipping industry faces increasing pressure to decarbonize, the outcome of the IMO meeting will be crucial in determining the pace and direction of the transition to cleaner fuels and technologies.
The debate over the level of the carbon levy and the allocation of funds highlights the complex challenges involved in balancing economic interests, environmental protection, and social equity.
ICS secretary-general, Guy Platten said: “It is time for governments bite the bullet. Unless a distinct GHG pricing mechanism and feebate programme are included in the IMO regulations adopted next year, we genuinely fear that shipping’s transition to net zero by or around 2050 will be unlikely to succeed.”
“The costs of climate change disproportionately burden the poorest and most vulnerable nations. Revenues from shipping GHG levies must be directed to support these countries in their maritime transition and broader climate response. This is not just about reducing emissions but ensuring that no country is left behind,” commented Ralph Regenvanu, Vanuatu’s minister for climate change, adaptation, meteorology and geo-hazards, energy, environment and disaster risk-management.
Additional proposals are anticipated in the near future.
source: carbon herald
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