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China is urging developing countries to oppose a levy on shipping emissions and more stringent decarbonization targets for the maritime industry. The country criticized wealthier nations for setting unrealistic goals with significant financial costs. In a “diplomatic note” distributed to developing nations before a crucial meeting at the International Maritime Organization (IMO), China warned that ambitious emission reduction targets would impede sustainable development, increase supply chain costs, and hinder global economic recovery. Developed nations have yet to agree on the price for the emissions levy.
China’s lobbying efforts have sparked concerns over the lack of progress in decarbonizing the shipping industry, which is responsible for up to 90% of global traded goods. The IMO has committed to strengthening its ambition by halving annual shipping emissions from 2008 levels by 2050. However, closed-door negotiations at the IMO have become deeply divided between developed and developing member states, with China rallying countries against a shipping emissions levy alongside Brazil, Argentina, and South Africa. In contrast, the Marshall Islands, vulnerable to rising sea levels, support a $100-per-tonne emissions levy.
The diplomatic note from China raised several points. It argued for revenues generated by IMO regulations to be invested within the shipping industry, shifting the responsibility of climate change financing from developed countries to international shipping. China also opposed setting 2050 as the final year for achieving net zero emissions, instead advocating for a broader goal of achieving net zero GHG emissions from international shipping around mid-century. China sees the emissions levy as a way for developed countries to enhance their market competitiveness under the guise of environmental protection.
China’s position aligns with President Xi Jinping’s commitment to achieving near-zero net carbon dioxide emissions by 2060. However, China’s warnings about the effects of shipping emissions measures have been countered by the World Bank. The World Bank argues that broader use of revenues from an emissions levy would support poorer countries with limited opportunities to invest directly in the shipping sector. Premier Li Qiang also emphasized the need for developed countries to shoulder more responsibility in addressing the climate challenge.
During a summit in Paris, France and other wealthy nations called for the IMO to set targets that align with global ambitions of limiting global warming to 1.5°C above pre-industrial levels. The European Union plans to include the shipping industry in its emissions trading scheme. As discussions continue, it is essential to find common ground among member states to ensure sustainable and equitable progress in decarbonizing the shipping industry.
Additional reporting by Cheng Leng, Thomas Hale, and Edward White
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