Global Carbon Tax on Shipping Sets Sail: A Historic Step with Controversial Implications

India and 62 countries have approved the first-ever global carbon tax on the shipping industry, aimed at reducing emissions and promoting cleaner technologies. The tax is projected to generate up to USD 40 billion by 2030 but faces criticism for not addressing the climate finance needs of developing countries.

In a landmark decision, India and 62 other nations have voted in favor of the first-ever global carbon tax targeting the shipping industry, introduced by the United Nations' shipping agency. This decision, cemented at the International Maritime Organisation headquarters in London, marks a significant step in international climate policy.

Beginning in 2028, ships will be required to transition to cleaner fuels or incur fees based on their emissions. Despite being hailed as a breakthrough, the tax faces criticism for not allocating revenues to assist developing countries with climate change adaptation.

Critics argue that the carbon pricing measure falls short of the desired emission reduction targets. Oil-rich countries opposed the deal, while smaller and vulnerable nations expressed disappointment over the exclusion of broader climate finance considerations.

(With inputs from agencies.)