Wed 18 Mar 2009, 09:57 GMT

Japan proposes global bunker tax -source


Levy plan includes the idea of refunding money to ships to improve their energy efficiency.



The government of Japan proposes to impose a global tax on bunker fuel in a bid fight climate change, Reuters reports.

Japan is expected to present a proposal to the International Maritime Organization (IMO) in April which also includes a plan to pool the charges into a fund and, as an incentive, refund part of the money to vessels that improve their energy efficiency.

The plan is said to be similar to that of Denmark, but different from the European Commission's idea to incorporate shipping into a global emissions trading scheme beyond the 2008-2012 Kyoto period.

Speaking to Reuters, an unnamed source is reported to have said "We agree with the basic idea to charge bunker fuel and set up a fund to partly return to ships as an incentive to improve energy efficiency." The source is said to have added that the industry was considering how the pooled fund should be used to support developing countries.

In a recent study by the National Oceanic and Atmospheric Administration (NOAA) and the University of Colorado, ships were estimated to emit 0.9 teragrams, or about 2.2 million pounds, of particle pollution each year.

The shipping sector is also believed to contribute approximately 3 percent of the world's emissions of carbon dioxide, the main greenhouse gas.

Japan has said capping emissions in absolute terms would be difficult given high volatility in demand for international shipping, in which developing economies play a key role.

Instead, Japan argues the maritime sector should target improvements in the energy efficiency of individual ships and support developing countries' efforts to do so.

The International Maritime Organization (IMO) said that 'major progress' was made last week in developing measures to enhance energy efficiency in international shipping, and thereby reduce greenhouse gas emissions, when IMO's Working Group on Greenhouse Gas Emissions (GHG) from Ships met in London.

The working group, which was attended by more than 200 experts from all over the world, concentrated on the technical and operational measures to reduce GHG from ships - two of the three pillars of IMO's GHG work. The third pillar, possible market-based instruments, will be debated in depth at IMO's Marine Environment Protection Committee (MEPC) when it meets for its 59th session in July.

IMO   Japan 

Proteus Supply and Trading and Propeller Fuels logo. Propeller Fuels and Proteus Supply and Trading form commercial partnership to expand Americas coverage  

US-based Proteus and UK-based Propeller Fuels unite operations across the Americas and beyond.

Kasif Kalkavan vessel. Turkon Line’s LNG-powered Kaşif Kalkavan makes maiden call at Marport  

Türkiye’s largest domestically built LNG-fuelled container ship has docked at Marport for the first time.

Vinoth Kumar, Flex Commodities. Flex Commodities appoints Vinoth Kumar as general accountant  

Dubai-based bunker trader strengthens finance team with new accounting hire.

Kota Elok vessel. PIL's first LNG dual-fuel boxship receives cybersecurity certification on Singapore maiden call  

Pacific International Lines' 13,000-teu vessel Kota Elok becomes the first PIL ship certified to IACS cyber-resilience standards.

Princess cruise ship. Wärtsilä and Carnival Corporation sign 8-year lifecycle agreement for LNG-fuelled cruise vessels  

Deal covers four vessels across the Princess Cruises and Carnival Cruise Line fleets.

Antwerpen vessel. Exmar vessel completes first commercial voyage on ammonia dual-fuel  

Antwerpen sailed from China to India using ammonia in dual-fuel mode during commercial service.

Keel-laying ceremony of vessel with builder's hull no. CHB3016. Changhong International launches ninth LR2 tanker in Navios series  

Vessel includes future methanol and LNG conversion capability as well as shore power provision.

ECSA logo. European shipowners back EU ETS revenue earmarking but warn proposal falls short on clean technology support  

ECSA welcomes fuel support and revenue earmarking but calls for broader technology eligibility and a clear IMO withdrawal clause.

World Shipping Council logo. WSC backs EU ETS fuel revenue reinvestment but warns over port competitiveness rules  

The World Shipping Council welcomes proposed ETS fuel mechanism changes but flags concerns over neighbouring port proposals.

Green methanol bunkering vessel render. Western Baltic Engineering unveils green methanol bunkering vessel concept for Klaipėda  

Concept vessel design features an 800-tonne capacity and annual supply potential of 250,000 tonnes.