The 6PAC+ Alliance, a coalition of Small Island Developing States (SIDS) from the Pacific, Africa, and the Caribbean, along with key allies, is advancing its proposal for a shipping decarbonization levy as part of a strong and fair global carbon pricing mechanism for the shipping sector.
The group is at the 18th session of the International Maritime Organization’s (IMO) Intersessional Working Group on Greenhouse Gas Emissions (ISWG-GHG 18) in London. It is demanding a universal carbon levy to ensure that climate financing reaches the most climate-vulnerable nations, supporting a just and equitable transition while accelerating the shipping industry’s shift to zero emissions.
Over 50 nations and key industry players, including the International Chamber of Shipping (ICS), have co-sponsored a proposal to implement a shipping decarbonization levy, reinforcing a growing consensus on the need for decisive and equitable decarbonization within the IMO framework. Important differences still remain over the entry price of the levy and the ultimate use of the revenues it generates. The organization reports the ICS has offered a starting point of around $20/ton CO2-e, the EU suggesting $100/ton and the 6PAC+ arguing that $150/ton is the minimum price to keep the Paris Agreement target of 1.5 C alive.
“The shipping industry must transition in a way that is both ambitious and just. Our proposal directly reflects the urgent needs of our nations and the sector’s critical role in global climate targets,” said Ambassador Albon Ishoda, Marshall Islands Special Envoy for Maritime Decarbonization. “The broad support we’ve gained from across regions highlights the rising global agreement on a structured carbon pricing mechanism that prioritizes fairness.”
At ISWG-GHG 18, the 6PAC+ Alliance aims to:
- Build on the technical discussions from previous IMO meetings to refine the proposed carbon levy structure.
- Secure commitments from influential maritime stakeholders to back the highest ambition decarbonization measures.
- Advocate for a financing mechanism that ensures equitable distribution of revenues, channeling resources to support the climate vulnerable developing countries, in particular SIDS and Least Developed Countries (LDCs).
The alliance has put forward four key submissions that lay the foundation for a what it considers a comprehensive and fair decarbonization framework within the IMO:
- Economic Element of the Mid-Term Measures: A consolidated proposal advocating for a GHG levy to drive energy efficiency and generate revenue to support zero and near-zero emission fuels while ensuring a just and equitable transition.
- Revenue Disbursement Mechanism: Proposed amendments to MARPOL Annex VI, outlining a fair and transparent system for distributing funds generated by the levy to support climate resilience and economic development in vulnerable nations.
- Goal of the Basket of Measures: Defining the overarching objectives of the IMO’s mid-term measures to align with the 1.5°C climate target and uphold the principles of equity and responsibility.
- Implementation Timeline and Governance: Establishing a clear roadmap and institutional structure for the IMO GHG Strategy Implementation Fund to ensure effective execution and oversight of revenue use.
