Business
Shipping Nations Support Emissions Tax Proposal
Countries representing 66% of the global shipping fleet have come together to support a proposed flat tax on greenhouse gas emissions from shipowners.
This initiative, backed by 45 jurisdictions including Liberia and Panama, aims to hold shipowners accountable for their pollution in an industry largely dependent on fossil fuels. The collective capacity of these jurisdictions encompasses 1.6 billion deadweight tonnes.
Prominent shipping nations, such as Japan and Greece, have also shown their support, reinforcing the proposal’s diplomatic strength. However, the tax faces opposition from significant shipowning nations and exporters, including China, Brazil, and the United States. Disagreements remain over the specifics of the tax, with Liberia suggesting a levy of $18.75 per tonne, while the Marshall Islands propose a much higher rate of $150 per tonne.
The intended use of funds generated from this tax includes boosting energy efficiency, reducing the cost gap between fossil and near-zero greenhouse gas fuels, and financially assisting poorer nations in their energy transitions. Experts caution that a lower levy of $18.75 may not suffice to drive meaningful change, advocating instead for a higher tax of $100 to $150 per tonne to effectively support an energy transition.
The International Maritime Organization (IMO) faces a pressing deadline of 2026 to establish a robust economic measure aimed at achieving net-zero shipping emissions by around 2050. This proposal marks a significant moment in addressing climate change within the shipping industry, despite ongoing challenges in reaching consensus.
Source: Financial Times
