Date: Friday, June 16, 2023
Source: Splash 24/7
The World Bank is the latest high-profile name to make the case for a carbon tax for shipping ahead of next month’s Marine Environment Protection Committee (MEPC) gathering at the International Maritime Organization (IMO).
A new 58-page report from the bank suggests a carbon tax in shipping alone could raise $40bn to $60bn each year between 2025 and 2050, money which could be used to speed the decarbonisation of the shipping industry as well as boosting port infrastructure, especially in developing countries. Moreover, a portion of the revenues ought to go to least developed countries to help in their transition from fossil fuel use (see chart below on the bank’s distribution concept).
The World Bank maintains that a smartly designed distribution framework for carbon revenues can deliver on the twin goals of maximising climate benefits and ensuring an equitable transition for countries, especially for the most vulnerable.
The World Bank joins a growing throng of nations and organisations including the US, France and Denmark all keen to get a carbon levy agreed and introduced as fast as possible by IMO member states.
Splash will be bringing readers updates from MEPC next month.