A first step toward a global price on carbon

illuminem summarizes for you the essential news of the day. Read the full piece on The New York Times or enjoy below:

🗞️ Driving the news: The International Maritime Organization (IMO) has made a significant stride towards establishing the world's first global carbon price by agreeing to start charging the shipping industry for its carbon emissions starting in 2027
• This initiative aims to reduce greenhouse gas emissions from one of the largest contributing sectors, potentially raising tens of billions of dollars annually for climate policy

🔭 The context: The shipping industry, accountable for approximately 3% of global emissions, plays a critical role in the global economy, transporting the majority of goods worldwide
• A global carbon price on shipping emissions could not only deter pollution but also fund a transition to cleaner, more resilient economic practices

🌍 Why it matters for the planet: This move is seen as a pivotal step toward mitigating climate change at a global level
• The funds raised could significantly bolster efforts to decarbonize the shipping industry and support broader climate action initiatives, particularly in developing countries

⏭️ What's next: The details of the carbon pricing mechanism, including its structure, rate, and management of funds, are still under deliberation
• Proposals range from $20 to $250 per ton of carbon emissions

💬 One quote: "It’s been an extremely hard process to get where we are now," said Albon Ishoda, the Marshall Islands' negotiator, highlighting the challenges and progress made in negotiations.

📈 One stat: Shipping accounts for roughly 3 percent of global greenhouse gas emissions, underscoring the sector's significant impact on climate change.

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