MEPC 82 Submissions

Submission 1 ISWG GHG 17-2-x Levy 9 Aug

Executive Summary

The Committee is required to confirm the specificity of an economic mid-term measure(s) for agreement by MEPC83, having already agreed the technical measure will comprise a goal based GFS. The emission reduction targets are set in Chapter 3 of the 2023 Strategy and the required objectives these measures are designed to meet is defined at paragraph 4.5. Additionally at 5.3,  when developing candidate mid- and long-term GHG reduction measures, due account should be taken to ensure a just and equitable transition that leaves no country behind, including supportive measures.

The co-sponsors consider that the only proposal for a combination of measures that can adequately deliver on the 2023 Strategy objectives, in particular enabling a realistic contribution to ensure a just and equitable transition, requires a universal levy on GHG emissions with a sufficiently high entry price and a simple GFS that is progressively strengthened over time as technologies and fuels come to market.

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Submission 2 ISWG GHG 17-2-x Revenue 9 Aug

Executive Summary

In this submission the co-sponsors provide a just and equitable framework for the use of revenues required to achieve the objectives of the 2023 Strategy. The framework envisages revenue generated from both a GFS and a universal levy and disbursement to both active and passive mitigation and reparation uses. 

In determining revenue use it is necessary to clarify the terms ‘in-sector’ and ‘out-of-sector’.

Recommended text is offered for inclusion in a new Chapter 5 of MARPOL Annex VI

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Submission 3 ISWG GHG 17-2-x Evidence 9 Aug

Executive Summary

This paper offers an evidence-based summary of the benefits from a levy/GFS combination of midterm measures as opposed to a contrary view that such a levy would be uniquely damaging and must not be included in the basket of mid-term measures. Results from CIA modelling reported by DNV and UNCTAD allows comparison of a levy with an initial $150/t CO2e price in combination with a simple GFS (no flexibility mechanism), with many alternatives, including a GFS with a flexibility mechanism but no levy. Contrary to narratives used by some countries when arguing not to include a levy, these reports evidence that the levy is a lower cost, lower impact policy solution for all countries, including developing countries, SIDS and LDCs. Consistent with wider literature, the results provide evidence that countries remote from their export markets are not uniquely adversely affected, instead it is the lowest income countries and especially SIDS and LDCs that see the greatest negative impacts from an increase in cost. This evidence shows that levies are an essential tool for contributing both to shipping’s energy transition and to a just and equitable transition leaving no states behind, because unlike other policy options, they enable targeted distribution of significant revenues which can reduce inequities that occur due to the generalised cost increases associated with reducing shipping’s GHG emissions.

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Submission 4 ISWG GHG 17-2-x Case Studies 9 Aug

Executive Summary

In response to the invitation from the Secretariat at Task 4 of the mid-term measures CIA process for States to submit relevant country case studies, the co-sponsors present here their results to date from their own data collection and analysis program.

This work program was initiated prior to the formulation of the CIA Task 4 TOR with the primary objective of informing the negotiating position of those States. In developing these case studies, we have been cognisant of the developing work under the CIA process and we have used methodologies that could be of value to those processes.

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Download the case study report here.