An image of a cargo ship anchored in a port. Carbon tax on shipping reduces developing countries’ GDP by 0.13% | Photo by Reuters
Forty-seven countries, including the European Union, Canada, Japan and climate-vulnerable Pacific island nations, have rallied support for charging greenhouse gas emissions in the international shipping sector, according to documents reviewed by Reuters.
The document, which is being discussed at an International Maritime Organization (IMO) meeting now in its second week, outlines four proposals to impose a fee on each tonne of greenhouse gases produced by the industry, with a total Supporters from 47 countries are participating.
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Support for the idea has more than doubled from the 20 countries that publicly backed a carbon tax at France’s climate finance summit last year.
Supporters say the policy could raise more than $80 billion a year, which could be reinvested into developing low-carbon marine fuels and supporting transitions for poorer countries. Opponents, including China and Brazil, say it will penalize trade-dependent emerging economies.
These countries are vying to bring dozens of other countries to their side, including most African countries, but diplomatic officials say they have not yet taken a firm stance on the issue. is. IMO takes decisions by consensus, but can also decide by majority support.
Last year, United Nations agencies agreed to aim for a 20% reduction in emissions by 2030 and net-zero emissions around 2050. Countries agreed in last week’s talks to continue negotiations on emissions prices, but a summary of the official meeting said they were “divided on several issues.” ” about the idea.
Albon Ishoda, IMO Representative for the Lowland Marshall Islands, said the levy was the only reliable route to achieving IMO’s goals.
“If this doesn’t pass, what’s the alternative? Because we’ve already agreed on certain goals,” he said. “Are we going back to square one?”
Shipping, which transports around 90% of global trade, accounts for nearly 3% of global carbon emissions, and without tougher pollution controls, this share is expected to grow in coming decades.
Proposals submitted by countries such as the Marshall Islands and Vanuatu, which have long called for an emissions tax despite their heavy reliance on shipping, propose a $150 tax per tonne of CO2.
Researchers say a carbon price of $150 could make it economical to invest in low-carbon ammonia fuel systems compared to conventional ships.
mismatch
China, Brazil and Argentina rejected the idea of taxing CO2 during last year’s IMO talks. A study by the University of São Paulo in Brazil found that introducing a carbon tax on shipping would reduce the GDP of all developing countries by 0.13%, with Africa and South America being the worst-hit regions.
Brazilian negotiators said Brazil and other developing countries want a rapid energy transition with minimal disruption to their economies, especially for countries dependent on maritime trade. .
Proposals by Argentina, Brazil, China and others advocate a global fuel emissions intensity limit as an alternative, with fines for non-compliance. This means that if countries fully comply with fuel standards, emissions will not be subject to charges.
“We would not support a flat levy that would likely harm developing countries, but we would support a generous levy that would apply only to emissions above a certain threshold,” said a Brazilian negotiator. said.
Despite the differences, member states are still trying to agree on global measures to avoid more countries targeting the industry at the national level.
This would fragment the market due to different standards in each region, creating headaches for companies shipping products around the world.
issued – March 19, 2024 10:26 AM IST
