“Global Support Grows for Emissions Levy on Maritime Shipping: Panama and Liberia Join EU and Japan in Backing Proposal”
The number of governments supporting a global levy on maritime emissions has increased, with shipping-reliant nations like Panama and Liberia joining the European Union, UK, Japan, Nigeria, and Kenya in backing the proposal. This shift has been celebrated by Pacific island states, which are particularly vulnerable to climate change.
Arsenio Dominguez, the secretary-general of the International Maritime Organization (IMO), announced the growing support for the levy during a press conference at the IMO headquarters in London. This development marks a significant milestone in the collective efforts to address emissions from the shipping industry.
The upcoming talks in London in February and April will focus on whether to impose a levy on all of a ship’s emissions or to introduce a fuel standard. A levy would require ship owners to pay for every tonne of greenhouse gases emitted by their vessels, incentivizing the use of cleaner fuels like ammonia, biofuels, methanol, and hydrogen. On the other hand, a fuel standard would set a threshold for emissions, encouraging ship owners to use cleaner fuels or sail at slower speeds.
Negotiations on the specifics of the levy, including the amount and allocation of funds, are expected to continue. However, the IMO aims to have measures in place by 2027. Proposals submitted by governments suggest that a levy could raise over $100 billion annually, with funds allocated to research and development of clean fuels, port infrastructure, and addressing the disproportionate impacts on certain countries.
While some countries advocate for limiting the use of levy funds to the shipping sector, others propose directing funds to climate causes outside of shipping. Small island states and the International Chamber of Shipping have put forward a separate proposal to support climate initiatives beyond the maritime industry.
Opposition to the levy has been voiced by South American nations like Brazil, citing concerns about the impact on their economy, particularly in the export of bulky goods. Dominguez acknowledged the concerns of nations in the Global South regarding potential price increases in shipping and pledged to address these issues before the April talks.
Outside of the IMO, a coalition led by France, Kenya, and Barbados is exploring levies on various sectors, including shipping, aviation, fossil fuels, and financial transactions. Friederike Roder, the director of the Global Solidarity Levies Task Force, expressed support for the IMO’s discussions on a shipping emissions levy and emphasized the importance of collaboration to address global emissions challenges.
As discussions continue and proposals are refined, the international community is working towards a comprehensive strategy to reduce emissions from the shipping industry and mitigate the impacts of climate change on vulnerable regions.