Governments are facing increasing pressure to address the significant climate impact of the shipping industry, as discussions on regulating greenhouse gas emissions within the sector loom. The International Maritime Organization (IMO) is set to hold a key meeting in the summer, where the legal responsibility of states to tackle shipping's climate impact will be deliberated. While shipping currently contributes approximately 3% of global emissions, this figure could rise significantly without decisive action. A group of island nations has sought the opinion of the international tribunal for the law of the sea on the climate crisis and marine responsibilities, arguing that states are obligated under existing maritime law to combat vessel pollution and hold the shipping industry accountable for its emissions.
The NGO Opportunity Green asserts in its submission to the tribunal that the law of the sea already imposes obligations on all countries to address vessel pollution, including greenhouse gas emissions. Carly Hicks, the legal director of Opportunity Green, highlights that countries have largely delegated their environmental responsibilities over shipping to the IMO. Last year, the UN body acknowledged the need for action and proposed incorporating market-based economic measures, such as a levy, cap and trade scheme, or reward system, along with technical measures like a global fuel standard.
A levy to fund climate action has garnered growing support among states and the shipping industry. However, IMO members have yet to reach a consensus on the specific design of such a levy or how the generated funds should be allocated between decarbonizing the industry and supporting broader climate action. The IMO is expected to discuss a revised greenhouse strategy in July, which will likely determine the direction of technical and economic measures. The sector is also anticipated to agree on its first net-zero target, possibly for 2050, although clean shipping organizations advocate for an earlier target accompanied by interim actions. Opportunity Green argues that if the IMO fails to propose a robust solution or reaches no agreement, countries have an obligation to take unilateral action to address the issue. The forthcoming IMO meetings in July are seen as the final opportunity for the global shipping sector to demonstrate a meaningful commitment to combating climate change through global regulatory measures. Hicks suggests that if the sector falls short, a favorable opinion from the tribunal could become a lever to hold countries accountable for their inaction.
The International Chamber of Shipping, representing the industry at the IMO, contends that a global agreement is the most viable means to regulate shipping's environmental impact. The organization's deputy secretary general, Simon Bennett, emphasizes that the UNFCCC has entrusted the mandate of regulating shipping emissions to the IMO, similar to aviation, as attributing emissions from shipping to specific countries is complex. Pressure to address shipping's climate impact is further intensified by discussions at the leaders' summit in Paris, where the possibility of a shipping levy to supplement climate finance is being considered. Wealthy governments' commitments to provide $100 billion annually in climate finance to developing nations continue to fall short. Various innovative approaches to raise funds for climate mitigation, adaptation, and addressing loss and damage are being explored. French President Emmanuel Macron, co-hosting the summit, reportedly supports the implementation of a shipping levy as the most advanced option under consideration.
Overall, as the IMO meeting approaches, the urgency to address the climate impact of the shipping industry grows. The outcomes of these discussions and the subsequent actions taken will be crucial in determining the sector's commitment to combating climate change on a global scale.
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