India Backs First-Ever Global Carbon Tax on Shipping: Purpose and Impact
India has voted in favor of the world’s first global carbon tax on the shipping industry, joining 62 other nations — including China and Brazil — in supporting a proposal by the United Nations’ shipping agency, the International Maritime Organization (IMO). The initiative is being hailed as a major milestone for global climate policy.
Goal: Cutting Emissions and Promoting Green Technology
The decision was finalized after a week of intense negotiations at the IMO headquarters in London. The primary objective of the carbon tax is to curb greenhouse gas emissions from maritime vessels and encourage the adoption of cleaner, low-emission technologies. This marks the first time a global carbon levy has been applied to an entire industry.
Starting in 2028, ships will be required to either switch to low-emission fuels or pay a pollution fee. The carbon tax is projected to generate up to $40 billion by 2030. The revenue will be used to help decarbonize the maritime sector.
Impact and Criticism
Despite the historic nature of the agreement, critics argue that it falls short of addressing the climate finance needs of developing nations. Moreover, the carbon pricing mechanism is expected to reduce emissions by just 10% by 2030 — half of the IMO’s own 20% target.
Global Response: Divided Opinions
While countries like India, China, and Brazil supported the measure, several oil-dependent nations — including Saudi Arabia, the UAE, Russia, and Venezuela — voted against it. The United States abstained from the discussions and was notably absent during the final vote.
