{"id":45782,"date":"2025-04-13T09:01:52","date_gmt":"2025-04-13T03:31:52","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=45782"},"modified":"2025-05-07T21:18:17","modified_gmt":"2025-05-07T15:48:17","slug":"india-supports-first-global-carbon-tax-to-decarbonise-shipping-sector","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/india-supports-first-global-carbon-tax-to-decarbonise-shipping-sector\/","title":{"rendered":"India Supports First Global Carbon Tax to Decarbonise Shipping Sector"},"content":{"rendered":"<h2>What\u2019s in Today\u2019s Article?<\/h2>\n<ul>\n<li>Shipping Industry Latest News<\/li>\n<li>India Backs Global Carbon Tax on Maritime Emissions<\/li>\n<li>Background and Significance of the Global Tax<\/li>\n<li>India\u2019s Role and Position<\/li>\n<li>Expected Impact and Limitations<\/li>\n<li>Concerns from Developing Nations<\/li>\n<li>The Road Ahead: Technical Details Pending<\/li>\n<li>Global Carbon Tax for Shipping FAQs<\/li>\n<\/ul>\n<h2>Shipping Industry Latest News<\/h2>\n<ul>\n<li>India and 62 other countries voted in favour of the world&#8217;s first-ever global carbon tax imposed on the shipping industry by the United Nations&#8217; shipping agency.<\/li>\n<\/ul>\n<h2>India Backs Global Carbon Tax on Maritime Emissions<\/h2>\n<ul>\n<li>In a historic development, <strong>India has joined 62 other nations in supporting the world&#8217;s first-ever global carbon tax imposed on the shipping industry<\/strong>.\u00a0<\/li>\n<li>The agreement was reached at the International Maritime Organisation (IMO) headquarters in London on April 11, 2025.\u00a0<\/li>\n<li>This marks a significant step in the global fight against climate change, especially in a sector previously untouched by the Paris Agreement.<\/li>\n<\/ul>\n<h2>Background and Significance of the Global Tax<\/h2>\n<ul>\n<li><strong>Commercial shipping contributes about 3% of global greenhouse gas emissions<\/strong>. Despite this, it had remained outside the scope of global climate pacts like the Paris Agreement. The new decision by the IMO aims to plug that gap.<\/li>\n<li>This carbon pricing system, which <strong>will come into effect in2028<\/strong>, will require large vessels (above 5,000 gross tonnage) to either adopt cleaner fuel technologies or pay a penalty based on their emission intensity.<\/li>\n<li>According to the agreement:\n<ul>\n<li>Ships will pay <strong>$100 to $380 per tonne<\/strong> of CO\u2082 emitted, depending on compliance thresholds.<\/li>\n<li>The policy aims to generate up to <strong>$40 billion by 2030<\/strong>, which will be reinvested to <strong>decarbonise the maritime sector<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>India\u2019s Role and Position<\/h2>\n<ul>\n<li>India, along with countries like <strong>China, Brazil, South Africa, the EU, Norway, Japan<\/strong>, and <strong>Singapore<\/strong>, voted in favour of the resolution.\u00a0<\/li>\n<li>Their collective support highlights a growing international consensus on the need to decarbonise maritime operations.<\/li>\n<li>However, <strong>oil-producing nations<\/strong> such as <strong>Saudi Arabia, the UAE, Russia<\/strong>, and <strong>Venezuela<\/strong> voted against the resolution.\u00a0<\/li>\n<li>Interestingly, the <strong>United States<\/strong> abstained from voting altogether, maintaining its stance of not participating in the negotiations.<\/li>\n<\/ul>\n<h2>Expected Impact and Limitations<\/h2>\n<ul>\n<li>While the agreement is a bold step, experts argue that the current framework falls short of climate goals:\n<ul>\n<li>It is projected to reduce shipping emissions by <strong>only 10% by 2030<\/strong>, whereas the IMO&#8217;s own target is a <strong>20-30% cut<\/strong> by that year.<\/li>\n<li>Additionally, <strong>revenues will be exclusively allocated to the maritime sector<\/strong>, excluding broader climate adaptation or mitigation efforts, which has sparked criticism from vulnerable island nations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Concerns from Developing Nations<\/h2>\n<ul>\n<li>Many developing countries and small island nations expressed disappointment:\n<ul>\n<li>They advocated for a portion of the revenue to support <strong>broader climate finance<\/strong> needs.<\/li>\n<li>Countries like <strong>Tuvalu<\/strong> and <strong>Vanuatu<\/strong> criticized the lack of transparency and the weakened ambition in the final design.<\/li>\n<li>The policy\u2019s failure to support the <strong>1.5\u00b0C temperature goal under the Paris Agreement<\/strong> was seen as a missed opportunity.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>The Road Ahead: Technical Details Pending<\/h2>\n<ul>\n<li>Though the framework has been approved, several operational aspects remain undecided:\n<ul>\n<li>The policy is set to be <strong>formally adopted in October 2025<\/strong>.<\/li>\n<li>Mechanisms for <strong>revenue distribution, emissions verification, and compliance tracking<\/strong> are still being negotiated.<\/li>\n<\/ul>\n<\/li>\n<li>Environmental advocates have vowed to continue pushing for a more <strong>ambitious and inclusive approach<\/strong> in subsequent rounds of negotiation.<\/li>\n<\/ul>\n<h2>Global Carbon Tax for Shipping FAQs<\/h2>\n<p><strong>Q1.<\/strong> What is the purpose of the newly introduced global carbon tax on shipping?<\/p>\n<p><strong>Ans. <\/strong>It aims to reduce greenhouse gas emissions from the shipping industry and promote cleaner technologies.<\/p>\n<p><strong>Q2. <\/strong>When will the global carbon tax on shipping come into effect?<\/p>\n<p><strong>Ans. <\/strong>The carbon tax will be implemented starting in 2028.<\/p>\n<p><strong>Q3.<\/strong> How much could the global carbon tax generate by 2030?<\/p>\n<p><strong>Ans. <\/strong>It is estimated to generate up to $40 billion by 2030.<\/p>\n<p><strong>Q4.<\/strong> What will the revenue from this tax be used for?<\/p>\n<p><strong>Ans. <\/strong>All revenue will be ring-fenced exclusively for decarbonising the maritime sector.<\/p>\n<p><strong>Q5. <\/strong>Did all countries support the carbon tax?<\/p>\n<p><strong>Ans. <\/strong>No, while 63 countries supported it, 16 opposed it, 25 abstained, and the U.S. did not participate in the vote.<\/p>\n<p><strong>Source : <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/india-votes-in-favour-of-first-global-carbon-tax-on-shipping\/article69443058.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a> | <a href=\"https:\/\/timesofindia.indiatimes.com\/articleshowprint\/120241845.cms\" target=\"_blank\" rel=\"nofollow noopener\">TOI<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India joins 62 nations in backing world\u2019s first carbon tax on the global shipping industry, aimed at cutting emissions &#038; encouraging cleaner maritime practices.<\/p>\n","protected":false},"author":5,"featured_media":45783,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-45782","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/45782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=45782"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/45782\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/45783"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=45782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=45782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=45782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}