IMO Headquarters London Photo: RNZ Pacific / Kelvin Anthony
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."
Marshall Islands ambassador to the International Maritime Organisation, Albon Ishoda, middle, delivering his statement at the MEPC81 closing plenary in London on 22 March. Photo: IMO / Josephine Latu‑Sanft
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."
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.
There are 14 IMO member states in Pacific, including Australia and New Zealand. Photo: IMO
"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."
Member States adopt the 2023 IMO Greenhouse Gas Strategy in London. 7 July 2023 Photo: IMO
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."
