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Japan supports carbon tax system by levying charge on ships, based on bunker fuel choices

10 May 2022

Japan has submitted a proposal to the International Maritime Organisation that it would support a carbon tax system to raise more than USD 50 billion a year, reported Financial Times (FT). 

In a bold move to decarbonise the maritime industry, it suggested the industry pays USD 56 per tonne of CO2 from 2025 to 2030, which would raise more than USD 50 billion a year on the sector’s almost 1 billion tonnes of emissions. 

It also suggested increasing the costs every five years, up to USD 135 per tonne from 2030.

FT quoted a Japanese maritime bureau official close to the matter saying the scheme would collect funds from fossil fuelled ships and return money to help operators of environment-friendly vessels to get back their investment costs. 

Japan stands out from other countries such as China, Argentina and Brazil, in its proposal by levying a charge on ships depending on the marine fuel they use rather than ships hitting below a certain benchmark of carbon efficiency. 

 

Photo credit: Roméo A. on Unsplash
Published: 10 May, 2022

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