The global shipping industry is calling for governments to tax its carbon emissions, the BBC News website reports. In what may be seen as an unusual move by some, shipping industry leaders are calling on the world’s governments to impose a new tax on their own sector.
Shipping currently produces 2.9% of global greenhouse emissions, according to the Financial Times. Most of the giant cargo vessels which sail the world’s shipping routes are burning fuel oil which is made from the dregs of a crude barrel. There is no readily available alternative fuel which is commercially competitive.
The call for a new carbon tax comes from groups that represent over 90% of the global fleet, who have become concerned that the current measures set by the industry are too slow and conservative to be effective.
The UN agency that regulates shipping, the International Maritime Organisation (IMO) has faced criticism from environmental groups for the measures it put in place to cut carbon emissions by 2050. Other leaders from within the industry are also waking up to the fact that greater incentives are needed to mitigate the dangerous effects of climate change.
Guy Platten, secretary-general of the International Chamber of Shipping said: "A global solution is the only one that's going to work", adding that the tax would incentivise ship owners to invest in new technology. Groups are now pressing the IMO to start discussions about a worldwide carbon pricing scheme before 2023.
Negotiating the tax will be a complex process, and it is thought that it will take at least two years. It is expected that the tax will lead to extra costs for shipping companies that will be passed on to consumers.
A carbon tax could help to narrow the cost difference between fossil fuels and zero carbon fuels such as hydrogen or ammonia. The industry is considering setting up a $5bn research and development fund to assist with the manufacture of commercially viable alternative fuels.
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