The 83rd session of the Marine Environment Protection
Committee (MEPC83) reconvenes this week, and a global
shipping levy remains on the table, Marshall Islands’
special envoy for maritime decarbonisation
says.
Technical talks last week ended without
consensus at the International Maritime Organisation’s (IMO)
headquarters in London.
A group of African, Caribbean,
Latin American, and Pacific Island climate negotiators put
forward a compromise proposal for emissions pricing, now
reframed as the ‘Zero and Near-Zero
contribution’.
“The universal levy [for international
shipping] is essential,” Albon Ishoda said.
While
some, including the European Union and Canada, expressed
interest in a compromise, others such as Brazil, China, and
the United Arab Emirates voiced concern over the Marshall
Islands’ draft.
The United Kingdom indicated openness
to parts of the Pacific-backed text, while the United States
expressed concerns about fairness and scope.
“A
growing bloc of countries, particularly from Africa, the
Caribbean, Central America, and the Pacific, are united in
its focus on delivering ambition and equity for the Global
South,” Ishoda said.
“But when it comes to equity, our
voices continue to be ignored. I have real concerns that the
package being shaped may not be one that truly protects the
most vulnerable or ensures no one is left
behind.”
Tuvalu’s Minister for Transport, Energy,
Communication, and Innovation Simon Kofe said in an op-ed
last week that, “Done right, this levy can transform
shipping from one of the world’s top-polluting sectors into
a driver of climate action.”
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Kofe wrote that over 50
countries, representing a majority of the world’s shipping
fleet, have already expressed support for the world’s first
flat-rate levy on greenhouse gas emissions from any global
industry.
However, he said critical details such as
pricing, scope, and how revenues would be distributed must
still be finalised before April.
He is calling on
Brazil, as the host of the UN climate change conference
(COP30) this year, to “step forward” and “work in
solidarity” with the 6PAC+ coalition.
The 6PAC+ is an
alliance of Small Island Developing States (SIDS) from the
Pacific, Africa and the Caribbean nations advocating for
climate action within the IMO.
The coalition seeks to
ensure that climate policies in the shipping industry are
equitable, aligning with the principles of justice and the
1.5 degree Celcius climate target.
“Brazil’s past
reservations about a shipping levy are well-known in
maritime circles, often rooted in concerns about economic
impact and fairness,” Kofe said.
“But as COP30 and
BRICS chair, Brazil now holds a unique position. It can step
forward as a trusted mediator, working in solidarity with
the Global South to deliver real results – not only for
maritime nations but also for landlocked developing
countries.
“By advocating for a strong and fair levy,
and supporting the use of revenues for mitigation,
adaptation, and loss and damage – both within and beyond the
maritime sector – Brazil can reaffirm its longstanding
commitment to climate justice and equitable development
across Latin America, Africa, and the wider Global
South.”
Kofe said the IMO must, at a minimum, adopt a
levy that can fund the maritime energy transition and
generate sufficient revenue to support developing countries
in this process.
“This transition will come with costs
no matter the path we choose. But even the IMO’s own
analysis shows that a moderate levy – of at least US$150 per
tonne of emissions – would result in the lowest long-term
costs of all available options.
“It would also have a
lower economic impact than Brazil’s own alternative
proposal.”
He said concerns about the impact of a levy
on trade and consumer prices were understandable, but they
were also overstated.
“The IMO’s own modeling shows
that the real cost of the shipping transition, from
switching to cleaner fuels and technologies, would raise
shipping costs by only 1% to 9%, and even with a levy of
$150 per tonne of carbon emissions added, the total increase
would be around 15% to 24%.
“That may sound high at
first glance, but here’s the crucial point: shipping costs
typically make up only 1%-5% of the final price of most
consumer goods.
“This means that even a significant
increase in shipping costs has a tiny effect on the final
price paid by consumers.”
The proposal 6PAC+ alliance
has put forward ensures that the cost of pollution is borne
by those responsible, he added.
“By placing a levy
directly on emissions, we uphold the principles of fairness,
accountability, and climate justice – ensuring no country is
left behind in the transition to a cleaner
future.”
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