Carbon levy on shipping gains global support

A group of 47 countries, including the European Union, Canada, Japan, and Pacific Island states, are advocating for a charge on the international shipping sector’s greenhouse gas emissions, Reuters reported on Monday.

The proposal, currently under discussion at an International Maritime Organisation (IMO) meeting, has seen support more than double from last year.

Proponents argue that the policy could generate over $80 billion annually, which could be reinvested into developing low-carbon shipping fuels and aiding poorer countries in their transition.

However, opponents, including China and Brazil, argue that it would disadvantage emerging economies reliant on trade.

The IMO, which makes decisions by consensus or majority support, agreed last year to aim for a 20 per cent emissions reduction by 2030 and net-zero emissions around 2050.

Despite ongoing negotiations, countries remain divided on several issues related to the price of emissions.

The shipping industry, responsible for nearly 3 per cent of the world’s carbon dioxide emissions, is expected to see this share grow without stricter anti-pollution measures.

Proposals include a $150 per ton CO2 charge, which researchers say could make investments in low-carbon ammonia-fuelled systems economically viable.

A September IMO meeting serves as the deadline for countries to decide on both the fuel standard and an emissions price. Diplomats suggest that at least the fuel standard is likely to be adopted.