Abstract:
In less than six months, the International Maritime Organization (IMO) will review its 2018 Initial Strategy for reducing the carbon emissions of the global shipping industry. The international shipping industry has long been anchored to high carbon emitting fuels due to their relative cost efficiencies. This means significant advances in research, innovation, and investment into carbon free vessels and fuels is required. The IMO is expected to soon enact a market-based mechanism, such as a carbon tax, in order to progress towards decarbonization. However, I argue in this paper that two obstacles stand in the way of such a mechanism being effective. First, I argue the IMO must determine how shipping emissions are to be allocated to member states. After critically analyzing allocation via flag states and via operating companies, I conclude the latter is the most legally efficient and politically feasible option. Second, I argue the IMO must engage with the shipping industry through the framework of a public-private partnership, to allow for the sharing of research, industry knowledge, and resources to make genuine strides towards decarbonization. This general approach provides a springboard for other specialized United Nations agencies to adopt in encouraging their industries to decarbonize.
