At the recent IMO climate talks in London, support for a global carbon levy on shipping increased, with thirteen more countries backing the proposal. Despite this growing support, the implementation of such a levy remains distant, reports Offshore Energy.
Ambitious Targets
Delegates at recent talks have identified 13 countries—Dominica, Georgia, Grenada, Kiribati, Malawi, Mexico, Namibia, Nauru, New Zealand, Senegal, Switzerland, Trinidad and Tobago, and Türkiye—that support a future greenhouse gas levy on shipping.
These countries align with 48 other states from the Caribbean, the Pacific, Africa, Asia, and Europe, representing a majority of the global shipping fleet, in advocating for a levy ranging from $18 to $150 per tonne of greenhouse gas emissions.
Blánaid Sheeran, Policy Officer, Climate Diplomacy, Opportunity Green, noted that while there’s confidence in the IMO meeting its ambitious timeline, the talks highlighted the need for significant progress on key issues, particularly the economic measure. She emphasized the strong support from over 50 countries for a levy that prices all of shipping’s greenhouse gas emissions.
Revenue Generation
UNCTAD economists believe a greenhouse gas levy is crucial for a cost-effective energy transition in shipping, and to generate revenue for climate adaptation and mitigation both within and outside the sector.
The World Bank estimates a $100/tonne GHG levy could generate up to $60 billion annually. The IMO is currently debating how much of this revenue should be allocated to developing and climate-vulnerable countries.
The generated revenue would be used to incentivize the production and adoption of zero/near-zero GHG emission (ZNZ) fuels and provide billions of dollars to support developing countries’ maritime GHG reduction efforts.
Pepukaye Bardouille, Special Adviser on climate resilience to the Prime Minister of Barbados and Director of the Bridgetown Initiative, emphasized the need for alternative funding sources to address the rising costs of the climate crisis and build resilience, particularly in vulnerable nations. She highlighted the encouraging support for maritime levies from approximately fifty countries, including those with substantial shipping fleets.
Ambassador Albon Ishoda, Marshall Islands Special Envoy for Maritime Decarbonization, stressed that ISWG-GHG 18 is a crucial test of the IMO’s credibility. He argued that without a universal levy, the IMO’s climate targets are meaningless, and that this is the fastest, most effective, and lowest-cost way to ensure a just and equitable transition. He warned that delays would cost lives, and the time for action is now.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Offshore Energy
