China Urges Poorer Countries to Oppose Shipping Emissions Tax
Introduction
China has recently called on poorer countries to resist the implementation of a tax on shipping emissions and higher decarbonisation targets in the shipping industry, arguing that these measures are unrealistic and would impose significant financial costs. The Chinese government distributed a “diplomatic note” to developing nations ahead of a crucial meeting at the United Nations International Maritime Organization (IMO) in July. This move comes in response to France rallying support from 22 allies for a levy on maritime emissions. As the world’s largest exporter and with a large state-owned shipping industry, China’s opposition to ambitious emissions reduction targets has raised concerns about the progress of decarbonisation efforts in a sector that accounts for up to 90% of globally traded goods.
China’s Concerns
According to a document seen by the Financial Times, China has warned that overly ambitious emissions reduction targets would hinder the sustainable development of international shipping, significantly increase supply chain costs, and negatively impact the global economy’s recovery. China argues that developed nations are pushing for unrealistic visions and levels of ambition, advocating for a carbon tax that would result in a substantial increase in shipping costs. The lack of consensus among rich nations on the price for the carbon tax further complicates the issue.
Divided Discussions
The talks at the IMO have become deeply divided between developed and developing member states. China has taken a proactive role in helping to bring countries together for closed-door negotiations. Brazil, Argentina, and South Africa have also expressed opposition to a levy on emissions from shipping companies, fearing that such a measure could raise the cost of exports for their large commodity markets. However, not all developing countries are united in their opposition. The Marshall Islands, which are particularly vulnerable to sea-level rise, have called for an emissions tax of $100 per ton. They express concerns about some countries not meeting their national commitments on decarbonisation.
China’s Proposal
China has proposed that any revenue generated by IMO regulations should be reinvested in the maritime sector, rather than being used for other purposes. China argues that wider use of these funds would shift the responsibility for financing climate change from developed countries to international shipments. The country also opposes setting 2050 as the latest year to achieve net-zero emissions, advocating instead for a broader goal of achieving net-zero greenhouse gas emissions from international shipping around mid-century. China views the tax on shipping emissions as a disguised way for developed countries to improve their competitiveness in the marketplace.
Global Impacts
The shipping industry accounts for 2-3% of global emissions, making it a significant contributor to climate change. Efforts to decarbonise this fuel-intensive sector have been criticized for their lack of progress and weak targets. By the end of next week, the IMO has pledged to boost its ambition and halve annual shipping emissions from 2008 levels by 2050. The outcome of these discussions will have far-reaching implications for global efforts to combat climate change. Environmental activists and organizations such as the OECD stress the urgent need for stronger action in the shipping industry, which plays a vital role in the global supply chain.
Unique Insights and Perspectives
While the article provides a comprehensive overview of China’s opposition to a shipping emissions tax and its concerns about ambitious decarbonisation targets, let’s delve deeper into some related concepts and share unique insights:
- The Role of Developing Countries: Developing countries play a critical role in global emissions reductions and sustainable development. It is essential to strike a balance between ambitious targets and the financial burden placed on these nations. Collaborative initiatives and support from developed countries can help ensure a just transition towards a greener shipping industry.
- Technological Innovations: To achieve significant emissions reductions in the shipping sector, investment in research and development of cleaner technologies is crucial. Developing countries should have access to and benefit from technological advancements, enabling them to participate actively in sustainable shipping practices.
- The Economic Case for Decarbonisation: While China is concerned about the potential increase in shipping costs, it’s important to recognize that decarbonisation efforts can also create economic opportunities. Investments in green technologies and infrastructure can lead to job creation, technological advancements, and increased competitiveness in a low-carbon economy.
- International Cooperation: The shipping industry operates on a global scale, necessitating international cooperation and coordination. Developing countries must be included in decision-making processes to ensure their voices are heard and their specific challenges are addressed. Platforms like the IMO provide opportunities for multilateral discussions and agreements.
Summary
China has urged poorer countries to resist a tax on shipping emissions and higher decarbonisation targets, expressing concerns about the financial costs and feasibility of such measures. The country argues that developed nations’ ambitious visions are unrealistic and could hinder the sustainable development of international shipping and the recovery of the global economy. The talks at the IMO have become divided between developed and developing member states, with Brazil, Argentina, and South Africa opposing a levy on emissions from shipping companies. In contrast, the Marshall Islands have called for an emissions tax to combat climate change. China proposes reinvesting revenue generated by IMO regulations in the maritime sector and opposes setting a specific year for achieving net-zero emissions. The outcome of the IMO discussions will have significant implications for global efforts to combat climate change and decarbonise the shipping industry.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
Receive free shipping updates
We will send you a myFT Daily Digest email rounding last Shipping news every morning.
China has urged poorer countries to oppose a tax on shipping emissions and higher targets for decarbonisation of one of the world’s most polluting industries, criticizing rich nations for setting “unrealistic” targets with “significant” financial costs “.
Beijing distributed a “diplomatic note” to developing nations as they prepared for a critical meeting at the United Nations International Maritime Organization in July, according to four people attending the IMO discussions. The lobbying effort comes just days after France rallied 22 allies behind a levy on maritime emissions.
China has warned that “too ambitious an emissions reduction target will seriously hamper the sustainable development of international shipping, significantly increase the cost of the supply chain, and negatively hamper the recovery of the global economy,” according to a document seen by the Financial Times.
He added: “Developed countries are pushing the IMO to unrealistic visions and levels of ambition. [They are advocating] an apartment [levy that] will lead to a significant increase in the costs of shipping”. Rich nations have not agreed on a price for the carbon tax.
Efforts by China, the world’s largest exporter which also has a large state-owned shipping industry, have heightened concerns over a lack of progress on decarbonising a fuel-intensive sector that supplies up to 90% of globally traded goods, according to the OECD.
By the end of next week the IMO has pledged to boost its ambition, which has long been criticized by environmental activists as weak, to halve annual shipping emissions from 2008 levels by 2050. But participants in the Talks at the IMO this week said China had helped bring countries together in closed-door negotiations that had become deeply divided between developed and developing member states.
Brazil, Argentina and South Africa have also opposed a levy on emissions from shipping companies, which they fear could raise the cost of exports for their large commodity markets, according to two people close to the discussions.
The poorest countries are not united in opposition. The Marshall Islands, which are particularly exposed to sea level rise due to climate change, have asked for an emissions tax of $100 a ton. Albon Ishoda, the country’s ambassador to the IMO, expressed concern that the level of “bias has become unnecessary”, with some in private discussions failing to meet their national commitments on decarbonisation.
He added that it is ironic that some developing countries have complained that a tax on maritime emissions would increase their financial burden, while demanding that the money generated by this measure not be invested outside the maritime industry. .
According to the note seen by the FT, China has called for any revenue generated by IMO regulations to be invested “in the sector,” arguing that wider use of these funds would shift “the responsibility for financing climate change from developed countries to . . . international shipments”.
He opposed setting 2050 as the latest year to achieve net-zero emissions, advocating instead a broader goal of “net-zero GHG emissions from international shipping around mid-century”. He said a tax on shipping emissions was “a disguised way for developed countries to improve their competitiveness in the marketplace.”
President Xi Jinping has vowed to reduce China’s net carbon dioxide emissions to nearly zero by 2060. The information office of the State Council in Beijing did not respond to emailed questions on Saturday.
The diplomatic note echoes comments by Premier Li Qiang, who said during a World Economic Forum event last week: “It is not right for developing countries to follow the standards of developed countries. Developed countries should take more responsibility for tackling the climate challenge.”
At the vertex in Paris during the same week, France and other wealthy countries asked the IMO to set targets that align shipping with international ambitions to limit global warming to 1.5°C above pre-industrial levels. The EU already plans to impose a financial cost on pollution from shipping by introducing the sector into its emissions trading scheme.
China’s warnings about the effects of such measures were countered last week by the World Bank, a lender to developing countries. He argued in a blog post that allowing wider use of any revenue from an emissions tax would support poorer countries that have little opportunity to invest directly in the shipping sector.
Additional reporting by Cheng Leng, Thomas Hale and Edward White
—————————————————-