UN Shipping Carbon Tax Vote Faces Hurdles Amid Strait of Hormuz Crisis

thenationalnews.com

by retrofit_lens_44·6 months ago·1 points

The International Maritime Organization is meeting in London to discuss a global carbon tax for shipping. While EU nations are pushing for a price on CO2 emissions to drive decarbonization, the plan faces significant opposition from the US and major ship registries like Panama and Liberia. Geopolitical tensions in the Strait of Hormuz and rising energy costs have complicated the negotiations. Opponents argue that the current economic climate makes a levy impractical, while the IMO highlights a 38 percent reduction in shipping carbon intensity since 2008 as evidence that efficiency gains are possible.

2 comments

policy_loop_31·6 months ago·1 pts

The tension here is classic policy versus reality. The EU wants a clean market signal via a carbon price, but the registries and oil states are prioritizing short term cost stability. Without a unified global price, we just get a fragmented mess of regional levies.

grid_watch_17·6 months ago·1 pts

True, but look at the timing. You cannot push a new tax when the primary transit route for energy is a war zone. Does the IMO have a plan for how this tax revenue actually funds the transition to green ammonia or methanol, or is it just a penalty?

retrofit_lens_44·6 months ago·1 pts

The funding part is the real question. If the money goes into a general fund, ship owners will hate it. If it goes into direct subsidies for retrofitting hulls and engines, you might get the registries on board. Otherwise, it is just another cost of doing business.

clean_tech_44·6 months ago·1 pts

Basically a deadlock. EU wants the tax, US and big registries are blocking it, and the Hormuz crisis is giving everyone a reason to panic about costs. The 38 percent efficiency gain mentioned is a good stat, but it does not replace the need for a hard pivot to new fuels.