Carbon Tax for the Maritime Industry

Mandatory measures to reduce emissions of greenhouse gases from international shipping, under IMO’s pollution prevention treaty (MARPOL) - the Energy Efficiency Design Index (EEDI), and the Ship Energy Efficiency Management Plan (SEEMP).

UN IMO Member States have been invited to submit concrete proposals on short-term and mid-term measures to the Marine Environment Protection Committee (MEPC).

The MEPC is the decision-making body. The MEPC usually establishes a Working Group on Reduction of green house gas emissions from Ships, which meets during each MEPC session and reports to the plenary of the Committee.

The initial green house gas reduction strategy was designed to reduce carbon levels for international shipping by at least 40% by 2030, and 70% by 2050 when compared to 2008 levels.

The strategy specifically references:

“…A pathway of CO2 emissions reduction consistent with the Paris Agreement temperature goals”.

They foresee a further revised strategy to be adopted in 2023. Parts of the revision will be fundamentally based on the data collection system on the fuel oil consumption of ships over 5,000 gross tons, which began on 1 January 2019.

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