US Gets Cold Feet as Nations Gather to Discuss New Shipping Levy

Government negotiators meeting in London are debating whether to propose a global fee on shipping emissions to fund climate action, but the US has so far taken a cold stand on the matter.

US Treasury Secretary Janet Yellen recently said that the tax was a "very constructive suggestion" and "something the US will look at."

The International Maritime Organisation (IMO), the United Nations division in charge of global shipping, is meeting in London for a fortnight of talks on decarbonization and the possibility of a new levy of up to $100 (£78) per tonne of carbon emitted by ships.

Nearly 40 world leaders and the heads of global financial institutions in June 2023 in Paris discussed a shipping levy. However, the US was not among the 22 countries who put their names to a statement backing the idea at the Paris summit.

The group of nations signing up to support a levy in Paris includes the European Union, several small island states, Vietnam, Kenya and major shipbuilder South Korea. The US government has not explained its stance so far.

Climate crisis that the world is facing today is compounding enormously, day in and day out. Raising an alarm, former US Vice President and noted climate campaigner Al Gore said: "The energy of 600,000 nuclear bombs had built up in the stratosphere."

Al Gore Delivers Blistering Speech on Climate Urgency

He also broadened the debate out to the political level, stating he believes that the climate crisis is ultimately a “political crisis” at root.

Maritime transportation emissions account for around 3% of global greenhouse gas emissions, and there are few alternatives to the cheap, heavy, and polluting diesel oil used by ships.

According to a new research by shipping analysts CE Delft, greenhouse gas emissions from shipping could be halved by 2030 without harming trade.

IMO Secretary General Kitack Lim had said: "Decarbonizing international shipping is a priority issue for IMO and we are all committed to acting together in revising our strategy and enhancing our ambition.”

However, it remains to be seen whether the US endorses the proposed shipping levy or opts to be a fence sitter.

Read More: Dubai Municipality Designs Recyclable MCCs Using Shipping Containers