Trafigura Proposes Carbon Levy of $250-300 per Tonne

Trafigura has submitted to the IMO recommending the best way of promoting green changes in shipping is through the adoption of a market-based measure that would charge a levy of between $250-$300 per tonne of CO2 equivalent.

Trafigura, part of the Getting to Zero Coalition, suggests “While primarily bridging the cost gap between carbon intensive and low or zero carbon fuels, this partial ‘feebate’ would also raise billions of dollars for research into alternative fuels and could help assist small island developing states and other developing countries mitigate the impact of climate change,” Nielsen and Larocca wrote.

Trafigura proposes its approach differs in that it would create a genuine market-based measure to reduce emissions, together with funding for R&D and for climate change-affected small island developing states.

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