Shipping Industry&Carbon Regs

Has shipping's carbon tax begun?

Shipping Industry & Carbon Rules

On July 7th of last year, the International Maritime Organization (IMO) adopted the '2023 Greenhouse Gas Strategy' during its 80th Marine Environment Protection Committee meeting. This reduction strategy aims to achieve international carbon neutrality in maritime shipping by 2050.

Previously, the goal was to reduce greenhouse gas emissions by 50% by 2050 compared to 2008 levels. However, the strategy adopted this time sets targets of a 20% reduction by 2030, 70% by 2040, and ultimately achieving net-zero emissions by 2050.

However, another noteworthy aspect of the outcome of this meeting is the issue of carbon pricing, specifically the proposal to impose carbon tax on the shipping industry's emissions. Some countries, led by China, opposed this approach, arguing for alternative measures.

As a result, there is currently only a conceptual agreement on the introduction of carbon levies in the maritime industry. It is expected that the actual implementation will occur in 2027 or later, once concrete criteria and implementation methods are established.

Absolutely, international shipping is a critical component of global trade, accounting for over 80% of world trade by volume. It serves as the backbone of the global economy. However, it's worth noting that while international shipping is essential for global trade, the emissions it generates represent approximately 3% of the world's total greenhouse gas emissions.

Currently, there may not be international consensus on carbon tax for the shipping industry, but environmental regulations are indeed expanding within the maritime sector. Therefore, it is crucial for shipping companies to accurately measure their greenhouse gas emissions and make efforts to reduce them.