France supports to form carbon levy coalition for shipping

France is rallying support for a global carbon tax on the shipping industry ahead of a summit hosted by President Emmanuel Macron.

Macron is understood to be searching for allies to issue a joint demand on members of the International Maritime Organisation to agree on such a charge at the organisation’s upcoming summit in July.

France is attempting to assemble a coalition of dozens of nations to endorse the proposal and has received backing from Japan and Denmark among others.

The IMO earlier set a target for shipping to cut yearly greenhouse gas emissions in half between 2008 and 2050, while the EU decided that starting next year, all ships traveling between the EU and other nations will have to purchase emissions permits. However, an agreement on a carbon levy at the IMO convention next month would put a financial cost on global shipping emissions.

A consortium of Pacific nations led by the Marshall Islands is proposing a charge that begins at $100 per tonne and gradually increases to make dirty fuels roughly as expensive as cleaner fuels. In the medium run, such a tax could raise up to $100bn per year, albeit the amount would gradually reduce if the levy was successful in convincing shippers to transition away from fossil fuels.