U.S. threatens to retaliate against plan to make ships pay for carbon emissions

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: The United States has withdrawn from the International Maritime Organization's (IMO) negotiations in London aimed at implementing a global carbon pricing mechanism for the shipping industry
• The U.S. government has expressed strong opposition to proposals that would require shipowners to pay for their greenhouse gas emissions, warning of potential retaliatory measures against countries supporting such initiatives

🔭 The context: The IMO, a United Nations agency responsible for regulating international shipping, is working towards achieving net-zero emissions in the maritime sector by around 2050
• A key proposal under discussion involves imposing a levy of up to $150 per tonne of carbon dioxide emitted by ships, potentially generating approximately $60 billion annually to fund climate adaptation efforts in developing nations
• While over 60 countries, including major shipping nations, support this measure, others like China, Brazil, and Saudi Arabia have voiced opposition, citing concerns over economic impacts and potential inflation

🌍 Why it matters for the planet: International shipping accounts for nearly 3% of global carbon dioxide emissions. Implementing a carbon pricing mechanism aims to incentivize the transition to cleaner fuels and technologies, thereby significantly reducing the industry's environmental footprint
• The revenue generated from such a levy could also provide critical financial support to developing countries facing the adverse effects of climate change

⏭️ What's next: Despite the U.S. withdrawal and threats of countermeasures, the IMO negotiations are set to continue, with member states striving to reach a consensus on the proposed carbon levy
• The outcome of these discussions will have far-reaching implications for international trade dynamics and the global effort to combat climate change
• Observers are closely monitoring whether the IMO can achieve an ambitious and equitable agreement that balances environmental objectives with economic considerations

💬 One quote: "The U.S. rejects any and all efforts to impose economic measures against its ships based on GHG emissions or fuel choice" ​

📈 One stat: The proposed carbon levy could raise approximately $60 billion annually to support climate adaptation in developing nations

See here detailed sustainability performance of companies like Maersk, and MSC Cruises

Click for more news covering the latest on carbon and sustainable maritime