EMEA News
MEPC80: EU ETS to Join IMO Scheme Once Ready, Says Lim
A levy on greenhouse gas emissions from shipping, agreed in principle at MEPC80, is likely to enter into force from 2027.
The levy or carbon tax was agreed at the meeting as a mid-term measure to implement the International Maritime Organisation's GHG reduction strategy. That and other mid-term measures are to be subject to an impact assessent.
But with the delay -- the European Union Emissions Trading Scheme starts next year -- other pricing schemes may emerge at a local, national or regional level.
Addressing the issue, IMO secretary-general Kitack Lim said in London on 7 July that while other pricing mechanisms may emerge in the interim, they would join the IMO global system once it is in place. Lim said that he had verbal confirmation from the EU to this effect.
A pricing mechanism for carbon is seen by many as a vital tool in reducing the shipping sector's GHG emissions. Putting a price on carbon in bunker fuel would accelerate the adoption of alternative marine fuels while funds from the tax could be directed towards developing states to mitigate the effects of climate change and to enable technology transfer.
