In a landmark decision, major shipping nations have agreed to impose a global tax on greenhouse gas emissions from the shipping industry, marking a significant step towards reducing the sector’s carbon footprint. The International Maritime Organization (IMO) announced the agreement following a meeting held in London on Friday.
Effective from 2027, the new regulations will require all cargo ships to utilise less carbon-intensive fuels or face financial penalties. The agreement establishes a minimum charge of $100 for every ton of greenhouse gases emitted above designated thresholds. The decision was supported by key maritime nations, including the European Union, Brazil, China, India, and Japan. However, several major oil producers, such as Russia, the United Arab Emirates, and Saudi Arabia, voted against the proposal, while the United States chose to abstain from the vote.
Shipping plays a significant role in global emissions, accounting for nearly 3% of total greenhouse gases, as reported by the IMO. A large portion of the world’s fleet, which includes around 100,000 cargo ships, still relies on diesel engines known for their high pollution levels.
Under the new agreement, cargo ships will be required to transition to a fuel mix with reduced carbon emissions. Penalties will apply to those that fail to comply. The estimated annual revenue generated from this initiative is projected to reach approximately $10 billion. These funds will be channelled into the IMO’s net zero fund, aimed at investing in the development of cleaner fuels and technologies essential for transitioning to green shipping practices.
Importantly, the agreement includes provisions to assist developing nations in their efforts to shift towards lower CO2 emissions in the shipping sector. It also introduces incentives for countries that achieve zero or near-zero greenhouse gas emissions in their shipping activities.
The IMO has set a target of reducing total annual greenhouse gas emissions by 50% by the middle of the century, aligning with the objectives set by the Paris Agreement to limit global temperature rise to a maximum of 1.5°C compared to pre-industrial levels.
Although the agreement was hailed as a breakthrough, it faced criticism from some quarters. A spokesperson for the US State Department indicated earlier in the week that the United States would not partake in negotiations, citing a priority for American interests in international agreements. Additionally, they threatened to implement “reciprocal measures” in response to fees applied to US ships.
Environmental organisations have praised the deal, calling it a significant step forward. Mark Lutes, a senior advisor for the World Wildlife Fund for Nature, remarked that it should herald a new era in addressing greenhouse gas emissions from global shipping. However, he cautioned that certain components of the agreement fell short of what is necessary to achieve the ambitious decarbonisation goals required.
Notably, island nations in the Pacific and Caribbean—regions particularly vulnerable to climate change impacts—expressed reservations about the agreement, voting against it on the grounds that it lacked sufficient ambition to meet essential decarbonisation targets.
As shipping nations embark on this historic initiative, the effectiveness of the new tax will be closely monitored to ensure it contributes positively towards reducing the industry’s contributions to climate change.
Source : DW
Category : Environment
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