Carbon Tax on Shipping: Growing Support but Consensus Remains Elusive
London, England – A carbon tax on shipping, under discussion at the International Maritime Organization (IMO), is garnering growing support from member states but has yet to reach consensus, according to participants interviewed by AFP.
The IMO met this week in London for negotiations ahead of the Marine Environment Protection Committee (MEPC 83) in April, where a standard mandating greenhouse gas (GHG) reductions is targeted for approval.
During the week-long meeting, 13 new countries aligned themselves with a levy system on carbon emissions from ships, joining a group previously comprising 48 nations. A growing body of countries from Africa, the Caribbean, the Pacific, Asia, Latin America, and Europe have come out in favor of a tax on maritime transport.
However, concerns "raised by an important minority including China and Brazil need to be addressed pragmatically (…) in order to achieve full consensus," said the International Chamber of Shipping (ICS).
Differing Perspectives
The camp opposed to a carbon levy argues that such a system would increase the cost of goods and contribute to global food insecurity. "Without a global levy, IMO’s climate ambitions are simply unachievable," countered Ambassador Albon Ishoda, the Marshall Islands’ representative to the IMO for maritime decarbonization. "It’s time for action, the cost of delay is lives lost."
Additional Measures
Alongside carbon pricing, governments are negotiating a global fuel standard (GFS), but "important details remain unresolved" on this topic, the ICS pointed out, particularly regarding the use of biofuels.
Transport & Environment and over 60 environmental non-governmental organizations have spoken out against the inclusion of biofuels in the future energy mix for shipping. The groups argue that biofuel production harms ecosystems and threatens food security.
"By 2030, 34 million hectares, equivalent to Germany’s total surface area, will be needed to grow enough crops to meet the increased biofuel demand of the shipping industry," said Transport & Environment.
The Need for Consensus
The IMO is under pressure to act decisively on climate change, as the shipping industry accounts for a significant and growing share of global GHG emissions. A carbon tax is seen as a key measure to reduce these emissions, but achieving consensus among all member states will be essential for its implementation.
The MEPC 83 meeting in April will be a critical opportunity for the IMO to finalize details of the proposed carbon tax and GFS. While progress has been made, further negotiations and compromises will be necessary to bridge the remaining divides and secure a comprehensive agreement.
Conclusion
The growing support for a carbon tax on shipping reflects the increasing urgency to address climate change within the maritime sector. However, concerns from certain member states and the need for a holistic approach that includes alternative fuel solutions present challenges to reaching consensus. The IMO negotiations in April will be a crucial juncture in determining the future of carbon pricing and other measures to decarbonize the global shipping industry.
