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Author Name: Emma Hau – Marketing Analyst at FreightAmigo｜25/5/2022
Japan, home to second largest body of shipowners in the world, has put forward its own proposal for a carbon tax to raise more than $55bn a year.
Japan’s proposal suggests the industry pays $56 per ton of CO2 from 2025 to 2030, which would raise more than $50bn a year on shipping’s almost 1bn ton of emissions.
Japan also suggested increasing the carbon tax every five years. According to the plan, $135 per ton in 2030, $324 per ton in 2035 and up to $673 per ton in 2040.
“We want to propose a scheme that would collect money from fossil fuel powered vessels and return the money to zero-emission vessels. This is to help the operators of environment-friendly ships recoup their upfront investment costs.” said a Japanese maritime bureau official involved in the carbon tax proposal.
Shipping industry generates almost 3% of global greenhouse gas emissions, more than are produced by Germany. Furthermore, Japan is the first major shipping nation to come out with specific dollar numbers for a carbon tax. Earlier, the Marshall Islands and the Solomon Islands had proposed a figure of $100 per CO2 ton.
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