Abstract

Europe’s IMO proposed mid-term measures revenue use will not result in a just and equitable 1.5 degree aligned transition, its approach to using revenues to meet the agreed objectives of the 2023 IMO Strategy is regressive, unbalanced and inadequate. It is also inconsistent with the precedent and process it has already established at home for disbursement of international shipping emissions revenues. However, Europe’s regional revenue allocation model, if it were scaled to a universally applied international program, is much more consistent with the position advocated for by the 6PAC+ alliance in ISWG-GHG 17/2/13. If applied universally rather than regionally it would also eliminate the current issues of both trade and carbon leakage to neighboring jurisdictions currently experienced by EU states.

As proponents of the various measures now negotiate in the lead up to the IMO’s decision-making point at MEPC83, it would appear sensible for those seeking convergence with the European-championed proposal to suggest Europe amend its current international revenue disbursement narrative to one that mirrors its regional approach

Keywords: International shipping; revenue disbursement; Just and Equitable Transition; GHG emissions pricing; EU ETS; IMO