April 22, 2021
Andrew Campbell
As US President Joe Biden invited 60 prominent world leaders on the virtual Leaders’ Summit on Climate to address the climate crisis, shipping associations, including the world's largest direct-membership organization for ship-owners BIMCO, Cruise Lines International Association (CLIA), the International Chamber of Shipping, and the World Shipping Council which collect more than 90% of the world merchant fleet, proposed new global carbon tax to direct ship owners to explore new technology in reducing carbon emissions.
For 2-day sessions on April 22 and 23, US Secretary of State Antony Blinken and Special Presidential Envoy for Climate John Kerry participated President Joe Biden, Vice President Kamala Harris, and cabinet secretaries and leaders from the private sector and civil society at the Leaders’ Summit on Climate. Meanwhile, President Biden hosted a key milestone event with world leaders to pursue measures in the reduction of global greenhouse gas emissions, the solution for vulnerable countries to tackle the climate crisis, and the economic benefits of climate efforts.
The leading shipping organizations proposed an R&D fund of US$ 5 billion as an initiative of the International Maritime Organization (IMO) to work out decarbonization to zero-carbon technologies of international shipping. The proposal requires vessels to meet higher environmental standards. The shipping industry is committing to work with countries in the IMO to achieve the goal of net-zero emissions from international shipping by 2050.
The shipping industry, excluded from the Paris Climate Change Agreement, is reportedly responsible for more than 2% of global carbon emissions, which amounted equally to the 6th biggest polluter above Germany. The Pacific nations of the Marshall Islands and the Solomon Islands have urged the IMO to levy a US$100 per ton on greenhouse gas emissions. In addition, Singaporean multinational commodity trading company Trafigura Group has proposed a levy of US$ 250~300 a ton of carbon dioxide on ship fuels. The proposed tax will cost extra for shipping companies that will mostly be passed on to the customers.
Photo:website.