Discussions about climate finance are usually framed around national borders: wealthy countries rightfully paying more than less-developed states for their historic responsibility in the climate crisis.
But holding only countries accountable for the damage done to our planet lets other polluters, often much larger than some major economies, off the hook.
We have a unique opportunity to rethink the whole approach, and set an important precedent where a major emitting industry – for the first time ever – pays for its greenhouse gas (GHG) emissions at the global level.
This industry is international shipping, whose global climate regulator, the UN’s International Maritime Organization (IMO), is meeting on March 11-22 to negotiate on policies to achieve its climate commitments and cut GHG emissions from ships.
This includes putting a price on shipping emissions, which the IMO has agreed to adopt in 2025.
Pacific “mixed feelings” after compromise on shipping’s climate goals
A multi-billion dollar sector powered by cheap fossil fuels, shipping has reached the point of emitting more pollution than all but the top five emitting countries worldwide. This is roughly the same amount as Germany or Japan in a year, and yet it remains almost tax-free.
Last year, the IMO reached a historic agreement to cut emissions 30% by 2030 and 80% by 2040, in order to reach net-zero by mid-century. This was in great part due to the valiant efforts of the Pacific Island delegations, who have for years now led the push for the highest ambition possible at the IMO.
Even though these targets fall short of what climate scientists say is necessary to limit global temperature rise to the Paris Agreement’s 1.5°C goal, it is in of itself the first deal of its kind. If achieved, it will help avoid over 10 billion tonnes of emissions cumulatively from now to 2050.
Polluters must pay their fair share
A growing number of governments and industry players back putting a price on international shipping emissions, so that polluters pay their fair share for the transition through a levy.
But the devil is in the details, and all eyes must be on the IMO, where the final decisions will be taken.
A well-designed levy will speed up the phase out of GHG emissions, help close the price gap between fossil and sustainable alternative fuels, and send a strong market signal to move towards zero emission solutions. But this must be done in a way that is just and equitable, particularly for those in the developing countries most impacted by the climate crisis.
Dozens of oil & industry lobbyists attended secretive shipping emissions talks
Crucially, a good levy will also generate significant revenues – between $1 trillion to $3.7 trillion could be raised by 2050. As called for by the Pacific islands at IMO, and supported by analysis from the World Bank, these funds ought to be allocated first and foremost towards supporting climate-vulnerable countries.
These revenues are new and additional, and completely separate from developed countries’ climate finance commitments negotiated at the COP summits. This is of paramount importance – otherwise we would be shifting the historic responsibility for climate change from developed countries, and their commitments under the UN climate convention, to industry.
These are two completely distinct and independent sources of funding.
The push for an ambitious levy
There are several levy proposals the IMO can choose from. The most ambitious one – which could secure a just and equitable transition – is a levy put forward by Belize, Fiji, Kiribati, the Marshall Islands, Nauru, the Solomon Islands, Tonga, Tuvalu and Vanuatu of $150/tonne of greenhouse emissions. A significant part of the revenues from this levy would go towards helping climate-vulnerable poorer countries fund shipping’s renewable energy transition, compensate for any rise in transport costs, and adapt to climate change.
The European Union has also recently reiterated its support for pricing GHG emissions, but is yet to support any specific proposal on the table. As the biggest negotiating bloc at the IMO, it is absolutely crucial that EU member states support a truly ambitious proposal, such as the one put forward by the Pacific Islands and Belize. Not doing so risks allowing momentum to grow around proposals that do not live up to the level of ambition we need at the IMO.
Other proposals currently on the table pose serious risks of incentivising the use of fossil fuels, such as LNG, and do not prioritise funds to support climate-vulnerable countries, which stand to lose the most from this transition without the right supportive measures in place.
We are at a crossroads – not just when it comes to shipping‘s climate action but also the way countries approach new and additional financial flows, and the March talks need to lead us in the right direction.
I urge governments not to miss this important opportunity, and make their voice heard at the IMO in support of an ambitious levy, such as the Pacific and Belize proposal, to get ships off fossil fuels and secure a globally just and equitable transition that leaves no country behind.
Ana Laranjeira is senior international shipping policy manager with Opportunity Green, an NGO working to unlock the opportunities from tackling climate change using law, economics, and policy. Since 2022, Opportunity Green has been working bilaterally with a number of ambitious climate-vulnerable IMO Member States towards building their capacity to actively participate in negotiations.
The post How to hold shipping financially accountable for its climate impacts appeared first on Climate Home News.
How to hold shipping financially accountable for its climate impacts
Climate Change
Hurricane Helene Is Headed for Georgians’ Electric Bills
A new storm recovery charge could soon hit Georgia Power customers’ bills, as climate change drives more destructive weather across the state.
Hurricane Helene may be long over, but its costs are poised to land on Georgians’ electricity bills. After the storm killed 37 people in Georgia and caused billions in damage in September 2024, Georgia Power is seeking permission from state regulators to pass recovery costs on to customers.
Climate Change
Amid Affordability Crisis, New Jersey Hands $250 Million Tax Break to Data Center
Gov. Mikie Sherrill says she supports both AI and lowering her constituents’ bills.
With New Jersey’s cost-of-living “crisis” at the center of Gov. Mikie Sherrill’s agenda, her administration has inherited a program that approved a $250 million tax break for an artificial intelligence data center.
Amid Affordability Crisis, New Jersey Hands $250 Million Tax Break to Data Center
Climate Change
Curbing methane is the fastest way to slow warming – but we’re off the pace
Gabrielle Dreyfus is chief scientist at the Institute for Governance and Sustainable Development, Thomas Röckmann is a professor of atmospheric physics and chemistry at Utrecht University, and Lena Höglund Isaksson is a senior research scholar at the International Institute for Applied Systems Analysis.
This March scientists and policy makers will gather near the site in Italy where methane was first identified 250 years ago to share the latest science on methane and the policy and technology steps needed to rapidly cut methane emissions. The timing is apt.
As new tools transform our understanding of methane emissions and their sources, the evidence they reveal points to a single conclusion: Human-caused methane emissions are still rising, and global action remains far too slow.
This is the central finding of the latest Global Methane Status Report. Four years into the Global Methane Pledge, which aims for a 30% cut in global emissions by 2030, the good news is that the pledge has increased mitigation ambition under national plans, which, if fully implemented, could result in the largest and most sustained decline in methane emissions since the Industrial Revolution.
The bad news is this is still short of the 30% target. The decisive question is whether governments will move quickly enough to turn that bend into the steep decline required to pump the brake on global warming.
What the data really show
Assessing progress requires comparing three benchmarks: the level of emissions today relative to 2020, the trajectory projected in 2021 before methane received significant policy focus, and the level required by 2030 to meet the pledge.
The latest data show that global methane emissions in 2025 are higher than in 2020 but not as high as previously expected. In 2021, emissions were projected to rise by about 9% between 2020 and 2030. Updated analysis places that increase closer to 5%. This change is driven by factors such as slower than expected growth in unconventional gas production between 2020 and 2024 and lower than expected waste emissions in several regions.
Gas flaring soars in Niger Delta post-Shell, afflicting communities
This updated trajectory still does not deliver the reductions required, but it does indicate that the curve is beginning to bend. More importantly, the commitments already outlined in countries’ Nationally Determined Contributions and Methane Action Plans would, if fully implemented, produce an 8% reduction in global methane emissions between 2020 and 2030. This would turn the current increase into a sustained decline. While still insufficient to reach the Global Methane Pledge target of a 30% cut, it would represent historical progress.
Solutions are known and ready
Scientific assessments consistently show that the technical potential to meet the pledge exists. The gap lies not in technology, but in implementation.
The energy sector accounts for approximately 70% of total technical methane reduction potential between 2020 and 2030. Proven measures include recovering associated petroleum gas in oil production, regular leak detection and repair across oil and gas supply chains, and installing ventilation air oxidation technologies in underground coal mines. Many of these options are low cost or profitable. Yet current commitments would achieve only one third of the maximum technically feasible reductions in this sector.
Recent COP hosts Brazil and Azerbaijan linked to “super-emitting” methane plumes
Agriculture and waste also provide opportunities. Rice emissions can be reduced through improved water management, low-emission hybrids and soil amendments. While innovations in technology and practices hold promise in the longer term, near-term potential in livestock is more constrained and trends in global diets may counteract gains.
Waste sector emissions had been expected to increase more rapidly, but improvements in waste management in several regions over the past two decades have moderated this rise. Long-term mitigation in this sector requires immediate investment in improved landfills and circular waste systems, as emissions from waste already deposited will persist in the short term.
New measurement tools
Methane monitoring capacity has expanded significantly. Satellite-based systems can now identify methane super-emitters. Ground-based sensors are becoming more accessible and can provide real-time data. These developments improve national inventories and can strengthen accountability.
However, policy action does not need to wait for perfect measurement. Current scientific understanding of source magnitudes and mitigation effectiveness is sufficient to achieve a 30% reduction between 2020 and 2030. Many of the largest reductions in oil, gas and coal can be delivered through binding technology standards that do not require high precision quantification of emissions.
The decisive years ahead
The next 2 years will be critical for determining whether existing commitments translate into emissions reductions consistent with the Global Methane Pledge.
Governments should prioritise adoption of an effective international methane performance standard for oil and gas, including through the EU Methane Regulation, and expand the reach of such standards through voluntary buyers’ clubs. National and regional authorities should introduce binding technology standards for oil, gas and coal to ensure that voluntary agreements are backed by legal requirements.
One approach to promoting better progress on methane is to develop a binding methane agreement, starting with the oil and gas sector, as suggested by Barbados’ PM Mia Mottley and other leaders. Countries must also address the deeper challenge of political and economic dependence on fossil fuels, which continues to slow progress. Without a dual strategy of reducing methane and deep decarbonisation, it will not be possible to meet the Paris Agreement objectives.
Mottley’s “legally binding” methane pact faces barriers, but smaller steps possible
The next four years will determine whether available technologies, scientific evidence and political leadership align to deliver a rapid transition toward near-zero methane energy systems, holistic and equity-based lower emission agricultural systems and circular waste management strategies that eliminate methane release. These years will also determine whether the world captures the near-term climate benefits of methane abatement or locks in higher long-term costs and risks.
The Global Methane Status Report shows that the world is beginning to change course. Delivering the sharper downward trajectory now required is a test of political will. As scientists, we have laid out the evidence. Leaders must now act on it.
The post Curbing methane is the fastest way to slow warming – but we’re off the pace appeared first on Climate Home News.
Curbing methane is the fastest way to slow warming – but we’re off the pace
-
Greenhouse Gases7 months ago
Guest post: Why China is still building new coal – and when it might stop
-
Climate Change7 months ago
Guest post: Why China is still building new coal – and when it might stop
-
Greenhouse Gases2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Climate Change2 years ago
Bill Discounting Climate Change in Florida’s Energy Policy Awaits DeSantis’ Approval
-
Climate Change2 years ago
Spanish-language misinformation on renewable energy spreads online, report shows
-
Climate Change2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Climate Change Videos2 years ago
The toxic gas flares fuelling Nigeria’s climate change – BBC News
-
Carbon Footprint2 years agoUS SEC’s Climate Disclosure Rules Spur Renewed Interest in Carbon Credits
