COP28: Micronesia suggests $150/mt carbon levy to reduce shipping emissions
Albon Ishoda, Ambassador to Fiji and the Pacific Islands, urged COP28 and IMO to apply the “polluter pays” principle through the levy.
PHOTO: Port of Honiara on Solomon Islands. Solomon Islands Port Authority
During the 80th session of the IMO's Marine Environment Protection Committee (MEPC) this year, the Marshall Islands, Solomon Islands, and Tuvalu urged the IMO to implement carbon pricing combined with revenue disbursement mechanisms like a feebate to “effectively promote the energy transition of shipping”.
Micronesian nations have now reiterated this stance. Speaking for the group, Albon Ishoda urged COP28 and IMO to adopt mid-term measures such as a global carbon levy starting from $150/mt of carbon dioxide equivalent (mtCO2e) for international shipping, according to a statement released by the Micronesian Center for Sustainable Transport.
“When we proposed this levy at MEPC76 we called for an entry price of $100/ton/CO2- eq - if the levy was operational by 2025. Now that the IMO has determined not to act before 2027, that price must increase if we are to achieve the necessary ambition,” Ishoda explained at COP28.
The levy must guarantee an “equitable” transition, he said.
According to him, the polluter pays principle can be applied to GHG emitters through carbon pricing. A significant portion of this revenue should be directed towards addressing the impacts of climate change in SIDS and LDCs, he suggested.
Some nations are perfectly situated for low-cost green hydrogen production, but “face the threat of more affluent nations leveraging their economic strength to dominate the global market.” Some nations “heavily rely” on shipping as their primary source of income from tourism.
The levy will thus ensure that “the responsibility for addressing climate change is shared by all" in a way that benefits the most vulnerable.
He further added that an “equitable” solution must ensure that all member states take advantage of "strategic and sustainable development opportunities" resulting from the development and deployment of zero-emission fuels, technologies, and infrastructure. Ishoda urged the COP28 participants to include small island nations (SIDS) and least developing countries (LDCs) in the decision-making process.
“We need all of this to happen with urgency. For the levy to be effective it needs to have an ambitious entry price. Too low and we send the wrong signals, one that enables only a partial transition to intermediate fuels.”
By Konica Bhatt
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