A report published today by Oxfam and WWF shows how a proposed deal to apply a carbon price to international shipping can tackle the huge and growing greenhouse gas emissions from ships, and raise billions of dollars to help developing countries tackle climate change, without unfairly hitting developing countries. The deal offers a solution to the deadlock on shipping emissions that has lasted more than a decade.
New report from Oxfam and WWF shows how proposed deal can work for rich and poor countries.
A report published today by Oxfam and WWF shows how a proposed deal to apply a carbon price to international shipping can tackle the huge and growing greenhouse gas emissions from ships, and raise billions of dollars to help developing countries tackle climate change, without unfairly hitting developing countries. The deal offers a solution to the deadlock on shipping emissions that has lasted more than a decade.
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| The report shows that a carbon price on international shipping can help tackle gas emissions from ships, and raise billions of dollars to help tackle climate change. |
The report, Out of the Bunker – Time for a fair deal on shipping emissions, is published the first day of a key ministerial meeting ahead of the UN climate conference in Durban, South Africa later this year. Agreeing further emissions cuts and finding new sources of climate finance to help developing countries adapt to climate change and cut emissions are two of the biggest challenges for the Durban meeting.
“Our research shows it is possible to cut the massive greenhouse gas emissions from shipping without unfairly hitting developing countries, and to generate billions of dollars in new cash for climate action in poor countries in the process,” said Tim Gore, Oxfam policy advisor on climate change and co-author of the report. “The costs are affordable but the benefits for the planet and those most vulnerable to climate change are huge. It’s time for shipping to become part of the solution to tackling climate change, not a big part of the problem,” he added.
Total emissions from international shipping are approximately three per cent of global emissions – greater than the total emissions from Germany, and around thirteen times those of New Zealand. A single ship can produce more emissions in one year than many small island states, some of which are nonetheless the most vulnerable to the effects of climate change.
Applying a carbon price of US$25 per tonne to shipping fuel (known as bunker fuel) would help cut emissions while generating US$25 billion per year by 2020. The finance would be used to compensate developing countries for marginally higher import costs resulting from the carbon price, and to provide more than US$10 billion per year in new money to the Green Climate Fund established at last year’s UN climate conference in Cancun, Mexico, to channel funds for tackling climate change to developing countries .
According to the report, the carbon price would only increase the costs of global trade by 0.2 per cent – equivalent to just $2 for every $1000 traded. South Africa, whose import costs are projected to increase by 0.14 per cent as a result, would receive compensation of approximately $200 million per year while Bangladesh, whose import costs are projected to increase by 0.19 per cent, would receive $40 million per year, in addition to any revenues received from the Green Climate Fund. The report shows how this money should be spent building the resilience of the poorest and most vulnerable people in each country.
“New Zealand has so far failed to identify new sources of climate finance, either in the short or long term,” said Barry Coates, Executive Director of Oxfam New Zealand. “This proposal provides a realistic way for us and other developed countries to make progress towards our agreed commitments to provide long-term finance for addressing climate change, while protecting and supporting our Pacific neighbours. Our government should support it,” added Coates.
After more than a decade of delay, there is the impetus to strike a breakthrough agreement on shipping emissions in 2011. The World Bank and IMF are due to report to G20 finance ministers in September on options to raise climate finance, including from international shipping. France has made agreement on innovative sources of finance for development and tackling climate change a priority under their G20 presidency.
Pa Ousman from Gambia, Chair of the Group of Least Developed Countries at the UN climate negotiations said, “We urgently need new sources of adaptation finance – taxing bunker fuels for ships and planes are one of the most promising.”
