Carbon emissions tax

After two weeks of negotiations at the International Maritime Organization (IMO), an agency of the United Nations (UN), the majority of participating countries agreed on the proposal to introduce the world's first global transmission tax. gender.

This latest round of negotiations, organized by IMO in London (UK) with the participation of dozens of countries, ended on March 22. Here, countries discuss how to apply climate regulations to the shipping sector - a sector that currently contributes about 3% of total global carbon emissions.

According to CNBC, 34 participating countries, including low-income and high-income countries, support the application of a global carbon emissions tax. This is a significant step forward compared to the most recent round of negotiations last year.

This round of negotiations is also the IMO's first meeting since member states agreed on a new greenhouse gas strategy in July 2023. Agreed by 175 IMO member countries, this new strategy aims to reduce shipping sector emissions by 30% by 2023, and at least 70% by 2040, while also aiming for sustainable development. net zero emissions by mid-century.

At the negotiating round, the majority of participating countries agreed to apply some form of emissions tax by 2025, to help reduce the price difference between fossil fuels and green energy. However, there are also proposals to combine the application of emission taxes with a number of other measures. This proposal received support from at least 14 countries.

“The UN is aiming to introduce the world's first global emissions tax, but this policy will only succeed if countries make it a reality,” said Ms. Sandra Chiri, manager of shipping emissions at Ocean Conservancy, a US-based transportation tax advocacy organization, commented.

According to Ms. Chiri, the recent negotiations at the IMO bring hope that most countries, located in the Caribbean, the Pacific, Africa and also in Canada and the European Union (EU), see opportunities. large opportunity from taxing emissions. This is a driving force for the green transition of the shipping industry, while ensuring all developing countries participate and benefit from this tax.

“It is unfortunate that there are still a small number of countries that do not support this proposal,” she said.

The shipping industry, responsible for more than 90% of global trade, is considered one of the most difficult sectors to decarbonize. Part of the reason is that this industry currently uses large amounts of fossil fuels for its huge fleet of ships.

Behind the proposal for a global greenhouse gas emissions tax on the shipping industry are a number of Pacific island countries such as Fiji, Marshall Islands, Vanuatu and some island countries in the Caribbean such as Barbados, Jamaica and Grenada.

In the recent round of negotiations, the Central American country of Belize and a number of Pacific island countries called for a tax of 150 USD for each ton of carbon emitted. This is described by campaigners as "the most ambitious proposal on the negotiating table".

There are also proposals to combine an emissions tax with a regulation on international emissions standards.

“As support for a global carbon emissions tax grows, countries must now quickly develop policy details to accelerate the decarbonization of the shipping industry,” Mr. Panos Spiliotis, senior manager of global shipping in the EU of the Environmental Defense Fund (EDF), emphasized.

It is expected that the next round of negotiations on this content at IMO will take place this fall.