Page 40 - IB August 2024

Shipping and Ports

A NARROW WINDOW

PACIFIC URGES THE IMO TO ACT ON CLIMATE

By Samantha Magick carbon trading options are also on the table.
The Pacific’s call comes in the leadup to a pivotal meeting
In another example of global leadership on climate action, next month of the IMO, which is the UN agency responsible
six Pacific Island members of the International Maritime for international shipping. The IMO says it wants to cut all
Organization are urging the organisation to adopt a universal shipping emissions by 2025, and has set intermediate goals for
levy on greenhouse gas (GHG) emissions from the shipping 2030 (20-30% reductions) and 2040 (70-80%) enroute to this
sector. target.
They say this levy should be coupled with a Global Fuel Now its members must agree on technical and economic
Standard (GFS), which would penalise states that do not meet elements in the basket of measures to reduce GHG emissions.
minimum standards. And they have a deadline of next April to reach agreement.
A levy would require ship owners to pay for every tonne of A recently published Micronesian Center for Sustainable
greenhouse gases their vessels emit. As a result, commonly Transport (MCST) working paper says next month’s meeting
used oil-based bunker fuel would be more expensive, and will deliver one of three outcomes: “a. a high price on
the development and use of lower-emitting fuels such emissions that can be used to drive industry mitigation
as ammonia, biofuels, methanol and hydrogen would be and empower a truly equitable transition, b. a cheap and
incentivised. insufficient credit trading scheme or c. fail to agree and kick
The ambitious proposal—which is being spearheaded by the can again. For the climate most vulnerable, only the first
the so-called 6PAC+ group—sets an initial price on GHG of option is available to us.”
US$150/tonne CO2-equivalent. They say this could potentially The 6PAC+ alliance says its argument has been strengthened
generate an average of US$60-90 billion annually. by a recent UNCTAD study, which found that a simple Global
However, not all International Martime Organization (IMO)
states support this proposal. Emissions credits or compliance/ Continued on page 42

40 Islands Business, August 2024