India votes in favour of first global carbon tax on shipping

INDIA and 62 other countries voted in favour of the world's first-ever global carbon tax imposed on the shipping industry by the United Nations’ shipping agency.

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The decision, taken at the International Maritime Organisation (IMO) headquarters in London on Friday after a week of intense negotiations, aims to reduce greenhouse gas emissions from ships and promote cleaner technologies.

The move marks the first time a global carbon tax has been imposed on an entire industry. Starting 2028, ships will either have to shift to lower-emission fuels or pay a fee for the pollution they generate.

The tax could generate up to USD 40 billion by 2030.

While the agreement is being seen as a breakthrough for international climate policy, it has also drawn criticism for failing to address the climate finance needs of developing countries.

All revenues raised from the carbon tax will be ring fenced for decarbonising the maritime sector and will not be allocated to broader climate finance efforts, such as helping countries adapt to climate change or recover from its impacts.