New charges on shipping could help climate

Juliette Jowit
The Guardian,
Monday October 6 2008

Billions of dollars could be raised to help the poorest countries cope with and tackle climate change under proposals to be floated in London this week for new charges on international shipping.
Opponents fear the charges - in the form of a fuel tax or selling permits to pollute - will raise the cost of food imports, especially for small island states that depend on trade to feed their populations.
However, a report for the environmental campaign group WWF estimates that price increases would average less than 1% and that up to $45bn (£25bn) could be generated a year, most of which would be spent on developing countries.
The sum raised, which partly depends on the future price of carbon, would greatly surpass the funds currently available for adaptation to climate change and the transfer of clean technology to developing countries. However it is still less than what the UN has said will be needed, including $67bn (£37.7bn) a year for adaptation alone.
"There's a chance for a double dividend: tackling a major source of greenhouse gases and putting money into the pot for vital climate assistance to those who need it most," said Peter Lockley, WWF's head of transport.
Although shipping is the least polluting form of transport per tonne, it generates nearly 850m tonnes of carbon dioxide annually. The UK produces 587m tonnes in total, and is also one of the top 10 shipping nations. The shipping and aviation industries are excluded from international agreements to reduce emissions because they operate across borders, but the UN has urged the industries to introduce their own schemes.
The UN's International Maritime Organisation, meeting in London this week, will hear two proposals: carbon trading under which permits to pollute would be auctioned and traded, and a fixed levy on fuel.