Members of the International Maritime Organization (IMO) are deeply divided over implementing a carbon tax on international shipping. Important talks are planned for this week to finalize emission-reduction measures, including the controversial tax. The proposed carbon tax is intended to make greenhouse gas emissions more expensive for shipping companies, encouraging them to reduce emissions. Nations like China and Brazil oppose the tax, warning it could raise the costs of goods and increase food insecurity.
The United States has not taken a clear stance on the issue, while the UK, Pacific, and Caribbean island states are strong supporters. Advocates argue the tax could generate funds to help countries hurt most by climate change. Albon Ishoda from the Marshall Islands stresses the urgent need for climate action due to severe impacts on his country.
Around 15 countries argue the tax could worsen global inequalities and raise prices for essential goods like palm oil and cereals. There are also concerns that the European Union may prefer a carbon credit system over the tax. Research from University College London suggests that not implementing a levy threatens the shipping sector’s climate goals and may skew fuel prices in favor of industrialized countries.
Challenges also arise with fuel standard systems, given potential deforestation and emissions linked to alternative fuels like palm oil and soybean oil. Brazil supports these biofuels, but over 60 environmental NGOs oppose their use in future shipping fuel mixes. Other proposed solutions include synthetic hydrogen-based fuels and wind-powered propulsion systems, though these are currently expensive.
The IMO aims to reach an initial agreement by next Friday regarding mechanisms to achieve carbon neutrality in shipping by 2050. These decisions carry significant weight, as shipping contributes nearly 3% to global emissions.
