Shipping industry prepares for carbon levy showdown

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🗞️ Driving the news: The global shipping industry is preparing for high-stakes negotiations at the upcoming International Maritime Organization (IMO) meeting in September
• The discussions will focus on implementing a carbon levy to reduce greenhouse gas (GHG) emissions, with the International Chamber of Shipping (ICS) proposing a two-part strategy: a carbon fee combined with a reward system for low-emission fuels

🔭 The context: The proposal faces criticism from the 6PAC+ alliance of Small Island Developing States, which advocates for a higher carbon levy of $150 per tonne
• This higher levy is seen as a way to accelerate the transition to clean fuels and ensure an equitable distribution of costs

🌍 Why it matters for the planet: The outcome of the IMO meeting will be crucial in determining the pace and direction of the shipping industry's transition to cleaner fuels and technologies
• The debate over the carbon levy level and fund allocation highlights the complex balance between economic interests, environmental protection, and social equity

⏭️ What's next: The shipping industry faces increasing pressure to decarbonize, and the IMO meeting's decisions will shape its future

💬 One quote: "Unless a distinct GHG pricing mechanism and feebate program are included in the IMO regulations, shipping’s transition to net zero by or around 2050 will be unlikely to succeed," said ICS secretary-general Guy Platten

📈 One stat: The 6PAC+ alliance's proposal calls for a significantly higher carbon levy of $150 per tonne

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