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Pacific and Caribbean island nations are advocating for the implementation of the first universal carbon levy on emissions from international shipping.

The International Maritime Organization has been urged to implement a carbon levy of $150 per ton of emissions from large freight and passenger ships, with a vote among its 175 member nations expected next year. For remote island nations like Tuvalu, shipping is essential for accessing international markets, food, and healthcare, but this reliance comes with a cost that they want shipowners to help cover.

The global shipping industry plays a crucial role in 90 percent of world trade and contributes nearly 3 percent of human-caused greenhouse gas emissions, which exacerbate climate change effects like rising sea levels, threatening the survival of small island nations. NASA reports that the sea level around Tuvalu is rising 1.5 times faster than the global average, and by the end of the century, it could increase by 20 to 40 inches.

Tuvalu's Minister for Transport, Energy, Communication, and Innovation, Simon Kofe, warns that low-lying islands may be fully submerged within 50 to 100 years. To combat this, Kofe and representatives from six Pacific island states, part of the 6PAC+ Alliance, are calling for the IMO to establish a mandatory universal carbon levy on shipping emissions from large commercial vessels weighing at least 5,000 gross tons.

Kofe believes the levy would incentivize a transition to greener practices while ensuring a fair approach. It would apply to ships transporting freight and passengers but exclude domestic fleets. If adopted, this could be the first global initiative to impose a price on carbon emissions from shipping.

At a recent meeting in London with nearly 200 IMO member states, representatives discussed the organization's plans for decarbonization, aiming for a 30 percent emission reduction by 2030 and reaching net-zero by 2050. While current discussions include improving fleet efficiency and exploring alternatives to heavily polluting fuels, a clear implementation strategy is still lacking.

Most marine vessels currently use highly polluting heavy fuel oil, contributing significantly to climate change. As alternatives are explored, the transition to carbon-neutral fuels could cost approximately $90 billion annually, with significant impacts on fuel prices and consumer goods, particularly in island nations reliant on imports.

The proposed carbon levy aims to generate revenue that could support vulnerable countries like Tuvalu and Belize in their transition to greener technologies and in adapting to climate change. If successful, this initiative may lead to similar levies in other sectors, addressing the reliance on fossil fuels.