Big polluters at sea to face new fees: The UN’s International Maritime Organization (IMO) has approved draft amendments to the International Convention for the Prevention of Pollution from Ships (MARPOL) that wouldforce the global shipping industry — which is responsible for 3% of world’s GHG emissions — to reduce and pay for a portion of its emissions, according to a statement issued last week. The new rules — to be formally adopted this October — will take effect by 2027 and apply to ships over 5k gross tonnes, covering 85% of international shipping’s emissions.

The details: The draft sets two escalating emissions targets, requiring gradual cuts to ships’ GHG fuel intensity. A stricter standard mandates a 17% cut by 2028 from 2008 levels, increasing to 21% by 2030 and 43% by 2035, the Financial Times reported on Friday. Ships that fail to meet this strict target would pay USD 100 per excess tonne of CO2 equivalent. The softer target would see cuts by 4% by 2028 and 8% by 2030, increasing to 30% by 2035, but failure to meet this level would result in steeper fees of up to USD 380 per excess tonne. The system also allows for credit trading, with compliant vessels able to sell credits to those that fall short.

The possible gains: The levies could generate USD 11-13 bn annually that would go to a newly proposed net-zero fund aimed at supporting clean fuel adoption, rewarding low-emission ships, and helping developing states upgrade high-emission fleets, AP reported on Friday.

Most Arab states opposed the proposal: The draft was passed with support from 63 countries including China and Brazil — which were previously reported in February to formally oppose the levy, Financial Times reported on Monday. Sixteen countries voted against — nine of which were from our region, including Iran, Iraq, Jordan, Yemen, Oman, Bahrain, Saudi Arabia, Qatar, and the UAE.

REMEMBER- The preceding negotiations have seen divisions between advocates of heavy levies on carbon emissions — including the UK, Pacific Latin American, Pacific and Caribbean nations — and the KSA, China, Brazil, South Africa, and eight other countries who have argued then that the levy wasn’t necessary to meet targets and thatit would harm developing nations’ exports, drive up food prices, and deepen global inequalities. The EU also reportedly trimmed its proposed levies down to target a USD 30 bn revenue from the tax, down from an initial USD 60 bn.

Some advocates were disappointed: Clean Shipping Coalition’s President Delaine McCullough slammed the proposal as “business as usual”, according to a press release issued last Friday. McCullough stressed that delays in transitioning to net zero will drive up costs for developing countries, which are least equipped to absorb the fallout. Experts also argued that the IMO failed to deliver a strong fuel standard, enforceable efficiency rules, or a meaningful carbon price — leaving room for regional and industry level action to pick up the slack.

ICYMI- The US exited the negotiations over decarbonising global shipping last week, and threatened to take countermeasures to nullify any GHG tax on US-flagged vessels.

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