INTERNATIONAL MARITIME SHIPPING
BRIEFING DOCUMENT
Topic: International maritime shipping and international aviationaccount for a major and rapidly growing source of carbon pollution, but remains entirely unregulated. Collectively known in UNFCCC jargon as “bunkers” (bunker fuels are the fuels that power international shipping and aviation) neitherindustryis covered under the Kyoto Protocol. In Durban, some Parties are pushing for measures to both reduce these sectors’ emissions and generate funds to help developing countries prepare for climate impacts and adopt clean energy technologies.
International Maritime Shipping
International maritime shipping is responsible for 3 percent of global emissions—twice that of Australia. In September 2011, WWF and Oxfam released the report Out of the Bunker: Time for a Fair Deal on Shipping Emissions which outlines how the sector can reduce emissions without hurting its bottom line or unduly penalizing developing countries. The approach would also help raise funds to meet the $100 billion pledge made in Cancun to help developing countries adapt to climate change and reduce their own emissions.
At the G20 Summit in November 2011, the World Bank and International Monetary Fund released their own report on how the global community could finance climate change adaptation which was in line with the WWF/Oxfam report. Bill Gates also touted this approach during a speech at the G20 Summit, along with a report with his own analysis, Innovation With Impact: Financing 21st Century Development.
Bill Gates, Report for G20 leaders
World Bank / International Monetary Fund, Mobilizing Climate Finance
World Wildlife Fund / Oxfam, Out of the Bunker
What the Industry is Saying
The International Maritime Organization, the UN body responsible for overseeing the industry, has also indicated support for such an effort, and there is general consensus in the industry around the need to price carbon pollution from international shipping. Just ahead of COP 17 the International Chamber of Shipping (ICS) released a briefing document for negotiators which states the industry should reduce emissions 20% by 2020 and direct the lion’s share of any funds raised to help developing countries with adapting to climate change and reducing their country’s emissions.
ICS, Shipping, World Trade and the Reduction of CO2
Joe Cox, president of Chamber of Shipping America, also considers a market-based measure to reduce the sector’s pollution as an “acceptable way to go” (E&E 9/9/11). In addition, while David Balston with the UK Chamber of Shipping debates the proper carbon price for international shipping, he asserts that “we believe shipping should pay in accordance with its level of carbon emissions” (Business Green, 9/8/11).
What Can Be Accomplished in Durban
The IMO has the final say about how to establish a price on carbon pollution from international maritime shipping. However, in Durban parties to the UNFCCC can give guidance to the IMO by agreeing to textsimilar to the following:
Noting that global frameworks developedunder the ICAO and IMO can involve carbon pricing or market mechanisms that generate financial resources which can be used to support developing country mitigation and adaptation measures, while ensuring no net incidence on developing countries through rebates to developing countries based on an agreed universal attribution key, in accordance with the principles of the UNFCCC, Invites the International Maritime Organization and the International Civil Aviation Organization to further develop such global frameworks for international maritime transport and aviation, respectively, in accordance with the principles of the UNFCCC and the customary practices of the respective organizations, and report back on progress by COP 18.