Carbon Revenue from International Shipping Report
Recently the World Bank has published the report “Carbon Revenue from International Shipping”.
This report explores options for implementing carbon pricing in the shipping industry. In addition, the report also explores how carbon revenues can be used to make the energy transition possible in and beyond the region.
Maritime transport accounts for about 70% of global trade by value. Maritime transport accounts for about 80% of global trade by volume.
Marine transport is responsible for approximately 2-5% of global greenhouse gas (GHO) emissions.
The International Maritime Organization (IMO) is considering measures to meet the goals of its initial greenhouse gas strategy. The strategy aims to reduce absolute greenhouse gas emissions from ships by at least 50% below 2008 levels by 2050.
Carbon pricing can be done either in the form of a carbon levy or by limiting GHG emissions. It allows ship operators to buy and trade emissions allowances. This can boost the green transition as well as increase revenue in the region.
Benefits of using carbon pricing-
- This could lead to the allocation of higher amounts of revenue to countries that have little ability to reduce climate change or shipping emissions.
- It supports the development of zero-carbon emissions ships, zero-carbon emission fuels, etc. This can help in decarbonization of shipping industry.
- Overall performance can be improved by increasing the capacity of sea ports facing climate change-induced extreme weather events, overcrowding, lack of digitization or lack of skilled labor.
Source – The Hindu