Very first sample of global emissions on the table at the OMI for discussions

The United Nations Shipping Agency is about to introduce binding regulations to eliminate the use of fossil fuels in global navigation – with the very first global sample of table emissions.

The International Maritime Organization (OMI) will hold talks in London this week to eliminate measures to reduce the climate impact of international navigation, which accounts For around 3% of global carbon emissions.

Some of the measures on the table Include a global standard of marine fuel and an economic element, such as a long carbon tax or a carbon credit scheme.

If it was implemented, a robust pricing mechanism in the navigation sector would probably be considered one of the climatic transactions of the decade.

An ambitious carbon tax is far from being a fury conclusion, however, with observers citing concerns concerning the sweeping of American prices, a world trade war brewing and the reluctance of members firmly opposed to any type of sample structure.

Sara Edmonson, responsible for world plea for the strong Australian mining giant, described talks as “absolutely historical”, in particular given a historic carbon sample.

“I think it would be an absolute changer of game. No other industry worldwide has made the commitment of this size and I would say that most countries have not engaged this size,” Edmondson told CNBC by phone.

However, she added that “the jury is still very out” with regard to a world carbon price.

“There are also a lot of discussions on the structures similar to samples, because obviously the word sampling in very polarized countries like the United States, like Australia and even in China, can be very difficult. But I think there are very good discussions on Levy-type structures which would ultimately have an equivalent effect,” said Edmondson.

The OMI marine environmental protection committee (MEPC) is program To conclude talks on Friday.

Some of the largest supporters of a global burden on greenhouse gas emissions on the maritime transport industry include the island states of the Pacific, such as the Fiji, the Marshall Islands and the Vanuatu, and the Caribbean island states, including Barbados, Jamaica and Granada.

Those who have opposed a carbon tax, such as Brazil, China and Saudi Arabia, have raised concerns about economic competitiveness and an increase in inequalities.

“For countries like Vanuatu … We see that the CCNUCC does not move fast enough – and this is the great opportunity,” Vanuatu Minister Ralph Regenvanu said on Monday.

The UNFCCC refers to the United Nations Framework Convention on Climate Change, a multilateral treaty which provided the basis of international climate negotiations.

If it is adopted, it would be “the first measure at the industry level adopted by a multilateral organization of the United Nations with much more teeth than we could not obtain in the CCNUCC process,” said Regenvanu.

OMI delegates agreed In 2023 to target net-zero sector emissions “by or to” 2050 and set a provision to finalize a basket of carbon reduction measures in mid-term in 2025.

“We are going to get something,” John Maggs, an accredited representative of the Clean Shipping Coalition at IMO, told CNBC.

“The calendar is quite clear and they really work, really difficult to hold on. So, I think it is not really a question of knowing if they get an agreement, it is just how ambitious it is, how effective it is and how many unhappy people there are,” said Maggs.

Maggs of Clean Shipping Coalition warned that a significant gap still exists between progressive and most conservative forces at IMO.

“My feeling on the progressive side is that people are optimistic and confident because the case they do is solid and they have technical expertise to support them,” said Maggs.

“But, in the end, China and Brazil and others will not just go:” OK, you can have your way. “There will be a payment executed in one way or another,” he added.

The international navigation sector, which is responsible For the transport of around 90% of world trade, is considered one of the most difficult to decarbonize industries given the large quantities of fossil fuels that ships are burning each year.

Angie Farrag-Thibault, vice-president of world transport at the Environmental Defense Fund, an environmental group, said that a successful result at the OMI would be an ambitious global fuel standard and an “decisive” economic measure to guarantee the considerably reduction of shipping pollution.

“These measures, which should include an equitable disbursement mechanism that uses existing climate financing structures, will encourage ship owners to reduce the use of fossil fuels and adopt almost zero and almost zero fuels and technologies,” said Farragh-Thibault.