{"id":631,"date":"2024-01-01T08:38:00","date_gmt":"2024-01-01T08:38:00","guid":{"rendered":"https:\/\/sortyourshipout.com\/?p=631"},"modified":"2024-01-12T10:39:31","modified_gmt":"2024-01-12T10:39:31","slug":"global-shipping-levy-what-are-the-proposals","status":"publish","type":"post","link":"https:\/\/sortyourshipout.com\/2024\/01\/global-shipping-levy-what-are-the-proposals\/","title":{"rendered":"Global shipping levy: what are the proposals?"},"content":{"rendered":"\n
<\/p>\n\n\n\n
The International Maritime Organization (IMO), the UN’s shipping body, agreed to adopt a levy price on the 1 billion tonnes of annual greenhouse gas emissions produced from the international shipping industry. The IMO’s 175 member states have until 2025 to reach an agreement.<\/p>\n\n\n\n
While we know that shipping – an untaxed, multi-billion dollar industry – will finally have to pay for its pollution, questions remain around the levy price and the distribution of the revenue. <\/p>\n\n\n\n
Here is a quick overview of the main proposals for a global shipping levy:* <\/p>\n\n\n\n
The most prominent proposal, seen by experts as the most ambitious, climate-friendly and equitable, is for a levy of $150<\/strong>\/tonne of greenhouse gas<\/a> put forward by countries in the Pacific, led by the Marshall Islands and the Solomon Islands. The World Bank estimates this levy could generate around $80 billion per year, which, according to the proposal, could be used for climate-related projects inside and outside the maritime industry in developing countries, but primarily in SIDS and LDCs. <\/p>\n\n\n\n This proposal is backed by a number of other nations in the region, such as Fiji, Tuvalu, Vanuatu, Kiribati and New Zealand. <\/p>\n\n\n\n The World Bank also came in support<\/a> of the revenue distribution proposed by the Pacific states in March 2023.<\/p>\n\n\n\n Japan is proposing to the IMO a levy with a starting price at $56<\/a>\/tonne of carbon in the first phase from 2025 to 2030, before rising to $135 from 2030, and up again every five years, to over $1,000\/metric tonnes in 2040s. The country suggests keeping the revenue inside the maritime industry, namely investing it in zero-emission vessels. The only flows of money to SIDS and LDCs would be to help them develop green shipping infrastructure.<\/p>\n\n\n\n The US think-tank argues<\/a> that an IMO levy needs to be set at $130-180\/tonne<\/strong> of carbon to make switching from fossil fuels onto clean alternative economic, adding that their proposal is “not an outlandish level.\u201d<\/p>\n\n\n\n In a study commissioned by the shipping industry associations, the maritime consultancy estimates<\/a> that the shipping industry could afford a levy of up to $400\/metric tonne of greenhouse gas<\/strong>, as this rate falls within historical volatility of marine fuels prices.<\/p>\n\n\n\n The boss of Maersk, one of the biggest and riches shipping companies world-wide, Soren Skou, backed on LinkedIn<\/a> a levy of $150<\/strong> per tonne of carbon.<\/p>\n\n\n\n The influential trading group Trafigura previously suggested<\/a> a levy of $250-300<\/strong> on greenhouse gas emissions from ships.<\/p>\n\n\n\n * Only the Pacific Island states and Japan submitted their levy proposals to the IMO, and can therefore be considered as proposals.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" The International Maritime Organization (IMO), the UN’s shipping body, agreed to adopt a levy price on the 1 billion tonnes of annual greenhouse gas emissions produced from the international shipping industry. The IMO’s 175 member states have until 2025 to reach an agreement. While we know that shipping – an untaxed, multi-billion dollar industry –… Read More »Global shipping levy: what are the proposals?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":""},"categories":[1],"tags":[],"yoast_head":"\n Japan<\/h2>\n\n\n\n
Rocky Mountain Institute<\/h2>\n\n\n\n
Clarksons<\/h2>\n\n\n\n
Maersk<\/h2>\n\n\n\n
Trafigura<\/h2>\n\n\n\n