Agreement nears for a global tax on ship emissions

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The possibility is approaching that, in the maritime sector, an international agreement will be reached to establish a global tax on greenhouse gas emissions. This is the result that emerges at the end of a week of discussions in London by the IMO (International Maritime Organization), the UN body responsible for dictating the rules for the maritime sector.

After the long meeting just concluded, the possibility of an agreement appears very close. In fact, the IMO expects to approve the details of the agreement at the next meeting scheduled for the end of September 2024; to then adopt the provision relating to what is defined as a f lat rate contribution, in 2025; and to bring the economic measure into force (after the necessary administrative-bureaucratic process) between the end of 2026 and the beginning of 2027.

Owners waiting

The shipping sector accounts for approximately 3% of the global calculation of greenhouse gas emissions. And the question of flat rate contribution is deeply felt, in particular, by European shipowners, as the EU has introduced ETS taxation from 1 January 2024 (Emission trading scheme), a system which is opposed by shipowners because it only applies to ships calling at Union ports; and, therefore, it lends itself to creating distortions of competition, to the detriment of the same units that dock in ports of European countries.

Shipowners, therefore, have long been asking for the IMO to decide on a global taxation system, which allows them to avoid distortions of competition and applies to all ships that sail the seas and oceans. The problem is that, to achieve the objective, it is necessary for the majority of IMO member states (which are 175 plus three associated nations, to which several intergovernmental and non-governmental organizations are added) to reach an agreement on the size and methods of taxation to be imposed worldwide.

The first results

In July 2023, 175 IMO countries had reached an agreement according to which shipping will have to reduce emissions by 30% by 2030; at least 70% by 2040 and reach net zero by 2050. With this new meeting in March 2024, however, a further step forward has been taken.