The World Bank has added its voice to various countries and organizations backing a potential carbon tax on international shipping.
The proposal comes ahead of the July meeting of the Marine Environment Protection Committee (MEPC) at the International Maritime Organization (IMO) in London. A key area of discussion is climate change, with shipping accounting for 3% of global emissions.
A 58-page report from the bank suggests a carbon tax in shipping alone could raise $40bn to $60bn each year between 2025 and 2050. Such funds could be used to accelerate the decarbonisation of the shipping industry as well as boost port infrastructure, especially in developing countries. In addition, a portion of the revenues could flow to least developed countries to facilitate their energy transition from fossil fuel use.
The report notably states: “By conducting and sharing analytics related to reducing emissions from international shipping in an effective and equitable manner, the World Bank seeks to support its twin goals: eradicating extreme poverty and boosting shared prosperity in a sustainable manner.”
(Photo by Pierre Terrien)
