The 83rd session of the Marine Environment Protection Committee (MEPC83) is set to reconvene this week, with the contentious global shipping levy under discussion. Albon Ishoda, the special envoy for maritime decarbonisation from the Marshall Islands, emphasized the necessity of implementing a universal levy aimed at reducing carbon emissions from international shipping. This follows a previous round of technical talks at the International Maritime Organisation (IMO) headquarters in London, which concluded without an agreement.
A coalition of countries from Africa, the Caribbean, Latin America, and the Pacific Islands has introduced a revised proposal for emissions pricing, termed the “Zero and Near-Zero contribution.” While nations such as the European Union and Canada express support for this compromise, there is considerable apprehension from Brazil, China, and the United Arab Emirates regarding the draft presented by the Marshall Islands.
The United Kingdom has shown a willingness to engage with elements of the Pacific-backed proposal, while the United States has raised concerns, particularly about the equity and scope of the proposed levy. Ishoda highlighted that many developing countries, particularly in the Global South, feel their perspectives are being marginalized in the negotiations. He voiced apprehension that the emerging package may not adequately protect the most vulnerable nations.
In his recent op-ed, Simon Kofe, Tuvalu’s Minister for Transport, Energy, Communication, and Innovation, stated that if implemented effectively, this levy could transform the shipping sector from a significant source of pollution to a catalyst for climate action. Kofe pointed out that over 50 countries supporting the introduction of a flat-rate levy represent a majority of the global shipping fleet. However, he cautioned that key details regarding the levy—such as pricing, distribution of revenues, and intended impacts—must be finalized before April to ensure it delivers benefits to those most affected.
Kofe called on Brazil, hosting the upcoming UN climate change conference (COP30), to take a leadership role in fostering solidarity among nations in support of the 6PAC+ coalition. This coalition of Small Island Developing States seeks to guarantee that climate policies within the shipping industry align with justice and the goals of limiting global warming to 1.5 degrees Celsius.
Addressing Brazil’s reluctance towards a shipping levy, Kofe argued that Brazil’s unique position as the COP30 host could foster collaboration for equitable solutions that benefit both maritime and landlocked developing countries. He emphasized the critical need for a levy sufficient to support maritime transitions and generate resources for developing nations.
Kofe expressed optimism that the proposed levy, estimated at around U.S. $150 per tonne of emissions, would ultimately yield the lowest long-term costs across available options. Concerns regarding trade and price increases related to the levy remain prevalent; however, Kofe noted that these may have less overall impact on consumer prices than many anticipate, given shipping costs typically account for only 1-5% of final consumer goods prices.
By advocating for a universal emissions levy, Kofe and the 6PAC+ coalition aim to ensure that accountability is supposed to resonate with principles of fairness and climate justice, ensuring that no country is overlooked in the shift towards a sustainable future.
This continued advocacy signals hopeful progress in addressing climate change through meaningful and collaborative international measures. The outcome of MEPC83 and future negotiations could potentially redefine the shipping industry’s role in global climate policy, especially for the nations most vulnerable to environmental impacts.
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