EURACTIVE — 2024-09-30
Maritime and Ports
The last meetings before the final adoption of an universal carbon pricing scheme for ships are kickstarting this week in London under the International Maritime Organization.
Those countries supporting a global price on the shipping industry’s greenhouse gas emissions (GHG) have increased following the start of final negotiations in London last week with negotiators to push for greater consensus as talks continue this week.
A working group of the International Maritime Organisation (IMO), a UN agency, met in London last week (Monday 23 to Friday 27 September) and saw an increase in the number of countries supporting a global levy on shipping GHGs.
“At this week’s intersessional ship climate negotiations, we saw growing support for a ship GHG levy and fuel standard. These need to be urgently agreed,” said Delaine McCullough, President of the Clean Shipping Coalition, in a press release.
According to NGO network GSCC, 39 countries showed support for a global GHG levy on shipping in last week’s negotiations, up from 34 supporters in March 2024 discussions.
However, some 15 IMO states remain opposed to a levy or prefer weaker mechanisms – for example, a greater emphasis on fuel standards.
This week discussions will continue in London under the IMO’s Marine Environment Protection Committee (MEPC), with the aim of reaching greater consensus on concrete design of the measure. These are the last debates scheduled before a spring 2025 meeting where countries should settle on an agreed mechanism.
The shipping industry is responsible for roughly 3% of global emissions, although this figure is expected to rise significantly in the absence of action.
In July 2023 IMO countries committed to net-zero shipping emissions “by or around” 2050, with intermediate GHG reduction targets for 2030 and 2040.
IMO countries also already agreed to a high-level ‘basket of measures’ to achieve these goals, which included a mechanism to put a price on shipping’s emissions, and standards to reduce the carbon-intensity of maritime fuels.
Countries must now concretely agree what the pricing mechanism should look like in practice, including a starting price and scope.
“A variety of pricing mechanism proposals are currently on the table, namely different options for a flat-rate GHG levy on international shipping emissions and options on a fee and rebate mechanism.” Ana Laranjeira, Senior Manager at Opportunity Green told Euractiv.
“While no decision has yet been made on this matter, we note the clear increasing support for a GHG levy on all [life cycle] international shipping emissions,” she added.
Channelling the revenues
Still under discussion is how to distribute the revenues flowing from any levy.
Options include using the revenues to accelerate the adoption of advanced zero-emission fuels and technologies, or to support the decarbonisation efforts of shipping in developing countries.
“We urge the IMO to adopt a high levy, allowing vulnerable countries to take advantage of the revenues to decarbonise their shipping industry and reduce the effects of climate change.” said Anaïs Rios, Shipping Policy Officer at Seas at Risk in a press release.
Decarbonisation efforts are expected to impact the world fleet in general and all IMO member states, but the least developed countries and small islands are expected to feel the greatest impact.
To guide the IMO’s decision-making process, a comprehensive impact assessment focused on these states was prepared and will also be discussed in this week’s MEPC meeting.
“The most relevant voices in this debate are the view of countries – particularly the most climate vulnerable ones, who bear the brunt of the impacts from both climate change and the transition to zero emissions, yet often struggle to get an appropriate platform at these climate deliberations.” Laranjeira added.
The IMO aims to agree on a GHG levy and other emission reduction measures in April 2025, with a final adoption expected at the end of 2025.