The International Maritime Organisation's shipping levy talks are at a crucial stage. Photo: Ship Gunzel / marinetraffic.com
The United Nation's global shipping regulator is set to discuss fresh proposals for the world's first global carbon levy in any sector, including submission from the Pacific, next month.
Pacific and Caribbean states, the EU countries, China, and the shipping industry have submitted proposals for a global carbon price, ranging from $100-$150/tonne of greenhouse gas (GHG) emissions.
The submissions also focus on how to ensure a just and equitable transition in this sector.
The International Maritime Organisation's shipping levy talks are at a crucial stage, according to shipping industry experts, with countries set to negotiate on the design of the policy, expected to include critical questions of the levy price and revenue distribution.
In a submission to the IMO, Pacific and Caribbean small island states, including Belize, Fiji, Kiribati, Marshall Islands, Nauru, Solomon Islands, Tonga, Tuvalu and Vanuatu, are proposing a levy of $150 per tonne of greenhouse gas emissions.
This is new proposal up from the initial $100/tn - led by Marshall Islands and Solomon Islands - proposal five years ago due to the delay in the policy adoption and implementation.
The Pacific and Caribbean nations are proposing for the revenue generated from the levy be used to fund international shipping's renewable energy transition, especially in low-income, developing countries, as well as for compensating for any negative impacts of this transition, such as higher costs of transport, and adapting to climate change.
Member States adopt the 2023 IMO Greenhouse Gas Strategy in London. 7 July 2023 Photo: IMO
An IMO spokesperson said the submissions will be discussed by its member states at the Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 16), which meets from 11 to 15 March, ahead of the Marine Environment Protection Committee, 81st session, which meets from 18 to 22 March.
"These discussions are in line with the work plan in the 2023 IMO Strategy on Reduction of GHG Emissions from Ships, which was adopted last July.
"IMO Member States have committed, through the Strategy, to peak GHG emissions from international shipping as soon as possible and to reach net-zero GHG emissions by or around, i.e. close to 2050, taking into account different national circumstances, whilst pursuing efforts towards phasing them out as called for in the Vision consistent with the long-term temperature goal set out in Article 2 of the Paris Agreement."
Pacific island states have been noted as the main drivers of the IMO levy negotiations, and their proposal is viewed by experts as the most equitable and aligned with climate science.
Under its 2023 Revised Strategy, IMO agreed that global shipping needs a 'GHG emission pricing mechanism', which will be adopted in 2025.
Over 100 countries have indicated support for a global shipping levy.
Note: An earlier version of this story included an AI generated image which was removed in line with RNZ policies.