IMO Meeting in London to Decide on Universal GHG Levy for Shipping Decarbonization

The IMO will hold a crucial two-day Intersessional Working Group on Greenhouse Gas (ISWG-GHG 19) meeting in London on March 31 and April 1. This meeting will pave the way for a decision on a GHG pricing mechanism by the Marine Environment Protection Committee 83 (MEPC 83) on April 7-11, determining the future of shipping’s climate responsibility. The 6PAC+ alliance, supported by Pacific, African, and Caribbean States, is pushing for a universal GHG levy of $150 per tonne of CO2-equivalent to close the cost gap with alternative fuels and drive large-scale commercial production by the 2030s.

Ambassador Albon Ishoda, Marshall Islands Special Envoy for Maritime Decarbonization, stresses the importance of a universal GHG levy for the credibility of the IMO’s climate targets. The levy is seen as the fastest, most effective, and lowest-cost way to ensure a just and equitable transition towards decarbonization in the shipping industry. The 6PAC+ emphasizes that without such a levy, delays in action could have severe consequences, particularly for vulnerable regions like the Pacific facing threats from rising sea levels and intensifying storms.

Support for the universal GHG levy is growing, with over 50 nations and industry leaders backing the initiative as the IMO’s economic measure. However, political divisions remain, particularly regarding the starting price and revenue distribution of the levy. While the 6PAC+ argues for a minimum price of $150/tonne CO2-e to align with the Paris Agreement target of 1.5°C, opposing views from BRICS and petro-states advocate for credit trading schemes. The 6PAC+ warns against distractions and calls for decisive action to address the urgent climate crisis.

Source