Paris Climate Summit Ends Without Deal On Global Tax On Shipping

The Paris summit on climate change and Finance came to an end without reaching an agreement to impose a charge on greenhouse gas emissions from international shipping.

Without a big declaration, the two-day summit of world leaders and financial titans to combat poverty and climate change came to a conclusion on Friday.

The summit’s host, French President Emmanuel Macron, announced that the next two years will be used to evaluate forthcoming changes to the global financial system.

The International Maritime Organization, the United Nations organization in charge of overseeing shipping, will convene in July and may vote to embrace the idea of a global tax on the greenhouse gas emissions caused by international shipping.

Strong support in Paris for a shipping tax, which some analysts estimate might raise £78 billion annually, would have given Mr. Macron a political victory.

“This is a tax-free sector. And there’s no reason why it’s not taxed,” he said. But the French president suggested China and the US were not supporting the idea.

“If China and the US and several key European countries are not on board, then you would put a tax in place that would not have any impact,” he added.

The money raised through taxation would be directed toward developing countries to help them deal with the challenges of climate change.

US Treasury Secretary Janet Yellen called the tax “a very constructive suggestion”, adding: “I think I would agree with President Macron’s description of the logic of why it would be appropriate, and it’s something that the United States will look at.”

Uncertainty exists on which summit participants backed the proposal, which might be a crucial step in convincing a sector with high emissions to contribute to the cost of combating climate change.

Almost 3% of greenhouse gas emissions are attributed to shipping, according to the International Maritime Organization. According to research by the European Parliament, the share could significantly rise by 2050.

No official decisions were to be made at the Paris meeting, but Mr. Macron had promised to offer a to-do list and a mechanism for measuring progress. No such document has yet been made public.

The summit attendees had been urged by several campaigners and non-governmental organizations to ensure that wealthy countries agree to debt relief for developing countries, including the cancellation of loans. Additionally, a language for debt suspension for nations affected by harsh weather conditions was addressed.

Activists are also advocating for a tax on the fossil fuel sector and another one on financial transactions to raise more money, but it seems that wealthy nations are not very supportive of these two ideas.

The International Monetary Fund has made £78 billion in assets, known as Special Drawing Rights, accessible to some fragile nations, according to remarks made in Paris. The French presidency then announced that 40% of its own Covid-19 pandemic assets will be shared.

Two deals were announced on the first day of the summit. According to French officials, Senegal reached an agreement with the EU and Western allies to support its efforts to improve its access to energy and increase its share of renewable energy to 40% by 2030. Debt-ridden Zambia was also reported to have reached an agreement with the EU and Western allies to restructure £4.9 billion in loans.