Centre Undertakes Research On Carbon Pricing Options
Continuation from last week’s analysis The Micronesian Center for Sustainable Transport (MCST) at the University of the South Pacific (USP) undertook research on carbon pricing options to provide guidance to Pacific high ambition delegations participating in International Maritime Organisation (IMO) negotiations.
SMALL ISLAND DEVELOPING STATE (SIDS)
This is the first such analysis undertaken through a Pacific lens, or by any Small Island Developing State (SIDS) for that matter. SIDS are a group of small island countries that tend to share similar sustainable development challenges, including small but growing populations, limited resources, remoteness, susceptibility to natural disasters, vulnerability to external shocks, excessive dependence on international trade, and fragile environments. Pacific SIDS include American Samoa, Cook Islands, Federated States of Micronesia, Fiji, French Polynesia, Guam, Kiribati, Marshall Islands, Nauru,
New Caledonia, Niue, Northern Mariannas, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor Leste, Tonga, Tuvalu and Vanuatu.
Putting a price on shipping carbon emissions is likely one of the most effective and contentious matters for IMO to now negotiate.
There is lot at stake for Pacific States. A 1.5oC agenda requires emissions to plateau now and sharply decline to zero before 2050.
An ambitious carbon tax or levy can assist by reducing the price differential between fossil fuel and non-carbon alternatives and
subsidizing in sector research and development (including specific research targeting the shipping needs of SIDS and Least developed countries (LDCs)).
LDCs are low-income countries confronting severe structural impediments to sustainable development.
They are highly vulnerable to economic and environmental shocks and have low levels of human assets.
Such a levy can also provide revenue to compensate the climate vulnerable countries as a punitive tax on the Greenhouse Gas (GHG) pollution shipping causes. International shipping continues to increase its share of pollution causing the climate change problem.
Under the internationally agreed “Principle of Polluter Pays”, there is no reason why it should not now pay some of the burden countries like ours in the Pacific now face. The research recommends implementing an immediate levy of $250/tonne of fuel oil on all international ship bunker, reviewed upward every five years.
Such a tax could generate more than $60 billion per annum (p.a.).
We recommend strongly that the majority for compensation be paid via direct ship contributions to the Green Climate Fund and a lesser amount administered under IMO auspices for subsiding research, development and deployment of new technologies and fuel across the shipping sector. In 2009 the world promised us that by 2020 it would put in place a fund of $100 billion p.a. for the climate financing needs of climate vulnerable states.
So far, the Green Climate Fund has attracted less than $12 billion. And that is total contributions, not what’s available each year. Surely its time that those making profit by continuing to emit the pollution causing the crisis to pay for the loss and damage experienced by states, which have contributed almost nothing to the problem. A lot now rests on the skill and stamina of our international negotiators at IMO. We will continue to try and play our part as researchers by providing them the best quality analysis possible.