Carbon pricing on the shipping sector is innovating and promising source
European Union finance ministers have indicated support for the carbon pricing of international maritime and aviation transport.The ministers, meeting in Luxembourg, adopted conclusions on climate finance ahead of the UN climate change conference in Durban next month.
At the Copenhagen climate summit in 2009, developed countries agreed to mobilise $100 billion per year by 2020 to help poor countries adapt to climate change and develop low carbon technologies. Since then, governments have been discussing the details of how to spend the money.
Carbon pricing on the shipping and aviations sectors has been recognised as one of the most promising innovative finance sources by the upcoming G20 report on Mobilising Climate Finance.
Development NGO Oxfam International, cautiously welcomed the conclusions of the meeting, but stressed that the EU should go further and “ensure that there are clear commitments that finance raised from these and other sources should be spent through the Green Climate Fund, agreed at last year’s UN climate conference in Cancún, and not go through national budgets as it risks disappearing in national coffers”.
After the meeting Oxfam spokesperson Lies Craeynest said “a charge on dirty shipping fuels to finance climate action in poor countries could be the breakthrough the UN climate talks need. EU Finance Ministers have taken steps forward today by stressing the role of such innovative sources in raising public money. Now they must prepare for the final stretch before Durban.
They should work with G20 partners to endorse the conclusions of the report to the G20 by the World Bank and IMF on raising new funds from shipping.”
According to the NGO, ministers should also agree on principles of a fair global carbon price for shipping in Durban so that the International Maritime Organisation can “crack on with the work from March next year.”
“They should agree that raising finance from international shipping will take account of the principles of common but differentiated responsibilities of the UNFCCC by compensating developing countries for the impact they have from such a scheme and channelling remaining revenues to the Green Climate Fund. At least $10 billion per year for the Green Climate Fund could be raised this way.”
On a negative note, Oxfam noted that so far there ahas been a failure to provide for climate finance after 2012, which could lead to a “finance hole” from January 2013.
Source: New Europe
