Global Support for Greenhouse Gas Pricing in Shipping Grows
After the conclusion of the latest International Maritime Organization’s Marine Environment Protection Committee (MEPC 81) meeting, it is evident that an overwhelming majority of countries worldwide, both developed and developing, have shown their backing for implementing a global greenhouse gas (GHG) price specifically for the shipping industry.
Courtesy of IMO
Support Across Continents
A total of 34 countries from regions such as the Pacific, the Caribbean, Africa, Europe, and North America have voiced their support during the recent discussions at the IMO meetings, advocating for the implementation of a universal GHG price, which could take the form of a levy as a standalone measure.
Of particular note is the involvement of several Caribbean Island states, many of which participated in the IMO talks for the first time, contributing significantly to the majority consensus.
Shift Towards Environmental Measures
Compared to discussions held in 2023, there has been a substantial increase in the number of countries supporting a GHG levy, while the opposing group advocating for less ambitious measures has remained relatively unchanged.
Among the nations in favor of alternative, less stringent mechanisms as part of broader measures, fourteen continue to hold this perspective, opposing the notion of a separate, universal GHG levy.
Legislative Framework for Change
For the first time, the IMO has established a provisional draft of the legislative framework to implement an economic measure involving GHG pricing and a fuel standard that promotes the use of sustainable energy sources in ships, enforced through an amendment to the MARPOL treaty.
Insights from Delegates
Delegates from the Caribbean Islands who participated in MEPC 81 expressed their views on the outcomes:
“Belize upholds a strong commitment to environmental protection, evidenced by our pledge to safeguard 30% of our ocean territories. While we welcome the revised GHG strategy adopted by IMO last year, we emphasize that a goal-based fuel standard alone may not suffice. Belize supports the implementation of a universal levy of $150/tonne of CO2e, coupled with a ratchet mechanism to promote the transition to cleaner energy sources,” stated Major Lloyd Jones, Belize Port Authority Chairman and Head Delegate.
“The unity demonstrated by CARICOM member states at ISWG16/MEPC81 is heartening. We remain dedicated to engaging with IMO processes to ensure an inclusive approach to achieving sustainable measures. Caribbean perspectives must not only be acknowledged but integrated fully,” the statement further added.
“Continuing our collaborative efforts with CARICOM members, we aim to enhance our position on decarbonization and engage with other Small Island Developing States (SIDs) and Least Developed Countries (LDCs). The focus on shipping decarbonization underscores the urgency of climate action,” emphasized the Caribbean Team.
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