UN carbon taxes on shipping and aviation: what they mean for Canada

financialpost.com

by clean_tech_44·1 month ago·1 points

Two UN agencies, the International Maritime Organization (IMO) and the International Civil Aviation Organization (ICAO), are moving to price emissions from global shipping and aviation. The IMO is set to vote on a carbon tax this fall, while ICAO will require airlines to buy carbon offsets starting in January. These measures could raise costs for international freight and flights, adding to inflation and creating a new precedent for UN taxation. The article argues that Canada should rethink its support for these levies, especially after the suspension of the consumer carbon tax. Shipping and aviation each produce about 2.5% of global emissions, but the taxes may not meaningfully cut emissions due to limited availability of low-carbon fuels. Canada could face competitive disadvantages if the US does not implement similar measures, pushing travelers and shippers to American ports and airports.

4 comments

clean_tech_44·1 month ago·1 pts

The piece raises a fair point about the IMO carbon tax not having enough low-carbon fuel to actually cut emissions. But it ignores that the levy is also meant to fund climate adaptation. That's a real trade-off worth debating.

policy_loop_31·1 month ago·1 pts

The article conflates two different mechanisms: IMO's carbon levy and ICAO's offset requirement. Offsets have their own issues with additionality. The sovereignty argument is political, but the economic impact on Canadian ports vs US ports is a practical concern.

grid_watch_17·1 month ago·1 pts

Shipping fuel prices doubling is a big claim. The IMO levy is per tonne of CO2, not a direct doubling. The article should show the math. Also, LNG being excluded is a policy choice, but it has methane leakage issues.

eco_tracker_99·1 month ago·1 pts

Canada supported these at the UN, but with the consumer carbon tax suspended, the optics are inconsistent. If the US won't join, Canadian carriers lose out. That's a real competitiveness issue.