Global Momentum Builds for Charge on Global Shipping Sector’s CO2 Emissions

A growing coalition of 47 countries, including key players like the European Union, Canada, Japan, and various Pacific Island nations, is championing the introduction of a carbon levy on the international shipping sector’s emissions. This movement represents a notable uptick in support compared to last year.

The coalition has put forward four distinct proposals, all advocating for imposing fees on each tonne of CO2 emitted by the shipping industry. Proponents believe such a measure could raise over $80 billion annually, funds pivotal in developing eco-friendly shipping technologies and supporting transition efforts in less affluent nations.

However, the proposal faces resistance from countries like China and Brazil, who argue it could unfairly burden emerging economies dependent on trade. Moreover, there are split opinions on how best to implement the measures, with some stakeholders favoring a global cap on fuel emissions intensity as a more viable option.

Achieving the International Maritime Organization’s (IMO) ambitious targets—cutting emissions by 20% by 2030 and reaching net zero by 2050—is widely seen as crucial. Many experts argue that imposing a carbon levy is beneficial and necessary for reaching these milestones.

Despite disagreements, there’s a concerted effort among member states to find common ground on global measures that would prevent a patchwork of local standards. Diplomatic efforts are currently focused on finding compromises, including potentially deferring decisions on allocating the levy’s proceeds. The pressing need for a unified approach to tackle shipping sector emissions is clear. Stakeholders are optimistic that minor disputes won’t derail the broader goal of securing a deal, underscoring the importance of collaborative efforts to safeguard the environment.

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Amidst mounting global pressure for a charge on CO2 emissions within the global shipping sector, Legacy Supply Chain empowers our customers by providing CO2 emissions tracking capabilities on all import/export shipments, ensuring that our customers meet regulatory requirements and thrive in a greener, more resilient future. By utilizing our enhanced reporting and analytics, our customers can gain a comprehensive understanding of their carbon footprint, including carbon intensity trends, emissions relative to weight and distance, and route-specific data.

Source: Reuters