HomeCarbon NewsGlobal Shipping Shakeup

Global Shipping Shakeup

The International Chamber of Shipping backed plans for a global surcharge on carbon emissions to fund the shift towards climate-friendly fuels. Their plan, which will be proposed to the United Nations, requires all international vessels of a specific size to pay per metric ton of carbon they emit.

The proposal has been well received by environmental groups and the International Maritime Organization, a U.N. body. If this surcharge passes, it will impact over 80% of the world’s merchant fleet. As of now, a price has not been set.

Director of Global Transportation at the Environmental Defense Fund, Aoife O’Leary, said, “We will know they are serious about real progress when they embrace a level of ambition consistent with what climate-vulnerable island nations have already proposed.”

Two nations with large shipping fleets and vulnerable territories (The Marshall Islands and The Solomon Islands) have suggested the surcharge starts at $100 per ton.

The Secretary-General of International Chamber of Shipping, Guy Platten, said, “This proposal sets out how to practically create a market-based measure for the global shipping industry, to quickly move towards an effective price. Rather than make guesses for PR purposes, we want to come to a number that will decarbonize the sector without disenfranchising huge proportions of the developing world on the way.”

Currently, the shipping industry accounts for nearly 3% of greenhouse gas emissions. That percentage is expected to increase over the next several years.

The International Chamber of Shipping aims to invest the money from this surcharge into a climate fund that would subsidize clean fuel alternatives. It is important to note that they oppose piecemeal regional measures, such as the current tariff being discussed within the EU.

Whether this global surcharge or the regional one being proposed by the EU is enacted, it is safe to say there is a drive for change. With these proposals on the table, and the global carbon offsetting industry expected to hit $22T by 2050, a net-zero future seems possible.

Most Popular
LATEST CARBON NEWS

US Power Demand Surge Spurs 133 New Gas Plants Amid Climate Targets

Nearly halfway through a decade critical for mitigating climate change, US utilities and investors plan to add 133 new natural gas-fired power plants to...

How Top U.S. Universities Cut Their Carbon Emissions to Help Fight Climate Change

With almost every nation endorsing the Paris Agreement, the goal is to limit global warming to below 2°C by reducing greenhouse gas (GHG) emissions....

Hydrogen Attracts Over $1 Billion in VC Funding Per Crunchbase Data

Hydrogen technology startups have secured over $1 billion in venture investment in the past four months, according to Crunchbase data. This already surpasses two-thirds...

C-Capture’s Innovative Carbon Capture Solution: A Game-Changer for the Cement Industry

C-Capture, the UK-based pioneer in carbon capture solutions, has initiated testing on a novel technology to reduce carbon emissions from cement production. This is...
CARBON INVESTOR EDUCATION

What Is COP28? Key Issues to Watch Out at 2023 Climate Summit

After a record-breaking year of devastating effects of climate change, from record wildfires in Greece and Canada to floods in Libya, the United Nations...

Climate Disclosure: New Corporate Standards for a Net Zero World

As part of the world’s continued efforts to combat climate change and transition towards net zero, one important piece of the puzzle is new...

Carbon Pricing: Understanding The Economics and Trends of Fighting Climate Change

As global temperatures continue to rise, the urgency surrounding climate policies has intensified, thrusting carbon pricing into the limelight of climate discussions. The race to...

The EU Corporate Sustainability Reporting Directive (CSRD): Key Things to Know

Companies operating in the European Union will have to deal with new non-financial and sustainability reporting requirements starting January 2024 with the EU's Corporate...