Carbon Revenues From International Shipping
Carbon Revenues From International Shipping

Author: Goran Dominioni

Publisher:

Published: 2022

Total Pages:

ISBN-13:

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The International Maritime Organization (IMO) is currently considering developing market-based measures to meet the objectives of its Initial Strategy on the Reduction of Greenhouse Gas (GHG) Emissions from Ships (Initial IMO GHG Strategy). While market-based measures are to reduce GHG emissions from international shipping as a matter of priority, some types of market-based measures, e.g. carbon levies or a cap-and-trade scheme without free distribution of emissions allowances, can raise significant revenues - thereby enabling an additional set of actions. Strategically using these revenues also appears more favorable than applying exemptions to address important equity considerations. Hence, the study investigates the unique potential of revenue-raising market-based measures to enable an effective and equitable energy transition and explores three questions: What could carbon revenues from international shipping be used for, who could be the recipients of such revenues, and how can adequate management of carbon revenues from international shipping be imagined? The study considers seven main revenue use options, of which some revenue uses appear more aligned with guiding principles of the Initial IMO GHG Strategy and other key desirable features (e.g., ability to deliver greater climate and development outcomes) than others. The analysis also suggests that splitting carbon revenues between the shipping sector and the use outside the sector could be a viable way forward. As primary recipients of carbon revenues, governments appear to be most suitable given the often blurred links between companies and countries in international shipping. However, to maximize climate and development outcomes, a share of carbon revenues may also be channeled to the private sector, including the shipping industry. The report stresses that expertise and experience from existing climate finance funds and international development organizations offering trustee services could be leveraged to inform and operationalize the management of carbon revenues from international shipping and to minimize transaction costs.

Carbon Taxation for International Maritime Fuels: Assessing the Options
Carbon Taxation for International Maritime Fuels: Assessing the Options

Author: Ian Parry

Publisher: International Monetary Fund

Published: 2018-09-11

Total Pages: 39

ISBN-13: 1484376668

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The International Maritime Organization (IMO) announced in April 2018 a target of cutting greenhouse gas (GHG) emissions from the sector by 50 percent below 2008 levels by 2050 and subsequent meetings of the IMO will develop a strategy for making headway on this commitment. This paper seeks to inform dialogue about the possibility of a carbon tax as a key element of GHG mitigation policy for international maritime transport. The paper discusses the case for the tax over alternative mitigation instruments, options for the practical design issues, and then presents estimates of the impacts of carbon taxation and other instruments from an analytical model of the maritime sector.

Taxing Carbon Emissions from International Shipping
Taxing Carbon Emissions from International Shipping

Author: T. Falcão

Publisher:

Published: 2019

Total Pages:

ISBN-13:

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According to the International Maritime Organization (IMO), maritime transport emits around 1 billion tonnes of CO2 annually and was responsible for approximately 2.5% of global greenhouse gas emissions in 2014. The prediction is that greenhouse gas emissions from maritime transport alone may increase between 50 and 250% by 2050, depending on future economic and energy developments. In spite of that, there is no concerted action or plan to tax or capture the CO2 emissions derived from international maritime shipping - the most widespread and popular form of transportation. This occurs in an environment where, from the perspective of corporate taxation, the international maritime industry is one of the sectors that is often taxed at some of the lowest tax brackets, if compared to other businesses. This article fulfils the threefold purpose of (1) discussing the international standards to which the international maritime transport network is subjected, from international public law and environmental law perspectives; (2) analysing the international tax regime applicable to the taxation of income derived from international shipping transport; and finally, (3) suggesting future policy approaches based on the principles and premises identified, to tackle carbon emissions derived from international maritime transport. The article purports to provide a full overview of the direct and indirect tax obligations which the maritime industry is under, and suggest policy approaches to assure that the environmental cost of transport is captured in the final price of products traded internationally, in order to reestablish geographic economic equity through the application of a carbon tax instrument.

Carbon Taxes
Carbon Taxes

Author: Mr.Ved P. Gandhi

Publisher: International Monetary Fund

Published: 1998-05-01

Total Pages: 40

ISBN-13: 1451849435

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The carbon tax is a major instrument for curbing greenhouse gas emissions that cause global warming. Yet its adoption has been limited because of concerns over its effects on economic growth, income distribution, and international competitiveness. The paper shows that policymakers can minimize the effects of the tax on economic growth through an efficient recycling of tax revenues and on equity through the adoption of appropriate mitigating or compensating measures. To eliminate the worry about the loss of competitiveness, the paper suggests an international agreement on a coordinated adoption of the tax.

Workshop Report: Nordic Action for a Transformation to Low-carbon Shipping
Workshop Report: Nordic Action for a Transformation to Low-carbon Shipping

Author: Beatriz Martinez Romera

Publisher: Nordic Council of Ministers

Published: 2017-06-20

Total Pages: 48

ISBN-13: 9289350717

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The Paris Agreement aims to hold the increase in the global average temperature to well below 2°C above pre-industrial levels (and pursue efforts to limit it to 1.5°C), but does not refer specifically to greenhouse gas emissions from the international maritime transport sector. This Report outlines the findings of a project commissioned by the Nordic Council of Ministers, focusing on opportunities for Nordic countries to achieve a transition to low-carbon shipping at national, regional and global scales. It is informed by discussions at the World Maritime University in Malmö in December 2016 between representatives of governments, businesses, NGOs and the research community. The Report presents a low-carbon roadmap for shipping with actions and outcomes concerning low-carbon technology, ship operations, finance, public policy, and public-private partnerships.

How Much Carbon Pricing is in Countries’ Own Interests? The Critical Role of Co-Benefits
How Much Carbon Pricing is in Countries’ Own Interests? The Critical Role of Co-Benefits

Author: Ian W.H. Parry

Publisher: International Monetary Fund

Published: 2014-09-17

Total Pages: 36

ISBN-13: 1498358276

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This paper calculates, for the top twenty emitting countries, how much pricing of carbon dioxide (CO2) emissions is in their own national interests due to domestic co-benefits (leaving aside the global climate benefits). On average, nationally efficient prices are substantial, $57.5 per ton of CO2 (for year 2010), reflecting primarily health co-benefits from reduced air pollution at coal plants and, in some cases, reductions in automobile externalities (net of fuel taxes/subsidies). Pricing co-benefits reduces CO2 emissions from the top twenty emitters by 13.5 percent (a 10.8 percent reduction in global emissions). However, co-benefits vary dramatically across countries (e.g., with population exposure to pollution) and differentiated pricing of CO2 emissions therefore yields higher net benefits (by 23 percent) than uniform pricing. Importantly, the efficiency case for pricing carbon’s co-benefits hinges critically on (i) weak prospects for internalizing other externalities through other pricing instruments and (ii) productive use of carbon pricing revenues.

Carbon Pricing in Shipping
Carbon Pricing in Shipping

Author: International Transport Forum

Publisher:

Published: 2022

Total Pages: 0

ISBN-13:

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This report reviews the effectiveness of carbon pricing, how it might be applied to the shipping sector and with what effects. It also evaluates recent proposals by countries to introduce a price on shipping's carbon emissions and examines related policy issues.