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Pacific island states push for universal levy on greenhouse gas emissions from shipping sector




By Pacific Island Times News Staff


The 6PAC+ Alliance of Small Island Developing States has submitted a series of comprehensive submissions to the next round of negotiations at the upcoming International Maritime Organization, advocating for the adoption of a universal levy on greenhouse gas emissions from the shipping sector and a just and equitable revenue disbursement framework.


With the science now in from the IMO’s comprehensive impact assessment, the

 evidence is that a levy and simple global fuel standards with a high entry price is no more costly than any other proposal and the only measures combination that can effectively deliver the levels of efficiency and equity needed.


International shipping is responsible for approximately 3 percent of global greenhouse gas emissions, a level comparable to that of major industrial nations.


With emissions expected to rise significantly due to increasing global trade,

the 6PAC+ Alliance, initially led by six Pacific countries, has been pivotal in advocating for high-ambition targets, including a GHG price on shipping emissions.


Albon Ishoda, Marshall Islands ambassador to Fiji, emphasized the urgency of this initiative for maritime decarbonization. 


“Shipping emissions are a significant contributor to global climate change, disproportionately impacting our vulnerable nations," he said.


"The 6PAC+ alliance is committed to ensuring that the transition towards green shipping practices takes the most effective and lowest cost pathway and delivers a just and equitable solution, particularly for those on the frontline of climate impacts," Ishoda added.

 

In 2023, the IMO adopted a revised strategy aimed at eliminating all shipping emissions by or around 2050, with intermediate goals set for 2030 and 2040. This strategy requires a complete energy transition of the shipping sector to non-GHG emitting technologies and fuels, a transition that the World Bank estimates will require well over a trillion dollar investment to achieve.


The 6PAC+ alliance’s submissions to the IMO highlight the necessity of combining technical measures with GHG pricing mechanisms to meet these targets.


They propose a universal mandatory levy on all GHG emissions, coupled with

a simplified global fuel standard. This combination is designed to promote the

 energy transition within the shipping industry, provide essential incentives,

and  ensure a level playing field and a just and equitable transition for all.


UNCTAD’s new report estimates a $150-300/ton price on shipping’s carbon

would raise up to $127 billion p.a. between 2027-2030.


Allan Lillia, permanent secretary for infrastructure in the Solomon Islands is feeling vindicated.


“When we first called for a levy in 2020, everyone said it was too hard to do. When proposed an entry price of $100 per ton they said it was far too high. When they delayed and we revised the figures and raised the price to $150 per ton

 last year they all raised their eyebrows. But, as it turns out, we are fully aligned with the science.”


The growing SIDS alliance is adamant that the significant new revenues that the IMO’s new measures will generate must be invested in the dual objectives of transitioning the world’s shipping fleet to zero-emission and in contributing to the real costs of a global transition for all and to the costs of responding to the deepening climate crisis.


Vanuatu’s Minister for climate change, adaptation, meteorology and geo-hazards, energy, environment and disaster risk-management Ralph Regenvanu, at the last IMO meeting in March 2024 emphasized the critical need for equitable revenue distribution, stating, “The costs of climate change disproportionately burden the poorest and most vulnerable nations. Revenues from shipping GHG levies must be directed to support these countries in their maritime transition and broader climate response. This is not just about reducing emissions but ensuring that no country is left behind.”

 

Maria Sahib, senior policy lead at the Micronesian Center for Sustainable Transport, reinforces the alliance ‘s commitment:


“MCST stands firmly behind the 6PAC+ alliance’s proposal. Implementing a universal levy is the most effective way to ensure that the transition  to  sustainable shipping is equitable. Our mission is to support measures that not

 only reduce emissions but also address the broader climate challenges faced by the most vulnerable states.”


The forthcoming IMO sessions, including ISWGGHG 17 and MEPC82 in late

September,  will be decisive in shaping the future of global shipping emissions

regulation. The 6PAC+ alliance remains steadfast in advocating for robust measures that facilitate a just and equitable transition, ensuring all nations can participate in and benefit from a sustainable future.


The 6PAC+ alliance’s efforts underscore the critical importance of smaller, vulnerable nations uniting to amplify their collective voice on the global stage.


As climate change disproportionately affects these countries, their unified stance is not just powerful—it’s essential. As the IMO prepares to make crucial

decisions, the solidarity of vulnerable nations in supporting ambitious measures

like the universal GHG levy becomes more critical than ever.


Their collective advocacy not only pushes for necessary climate action but also

 ensures that the interests of those most at risk are at the forefront of global maritime policy. (Micronesian Center for Sustainable Transport)

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