Oxfam/WWF Proposes 'Carbon Price' for Shipping

International shipping is a rapidly growing source of greenhouse gas emissions. Oxfam and WWF, the world's two major non-governmental organizations on climate change, agree that applying a "carbon price" to shipping can both reduce emissions and raise funds for climate change adaptation and mitigation in developing countries.

The two organizations have joined forces with International Chamber of Shipping (which represents over 80 percent of the world merchant fleet), urging attendees at the UN Climate Conference in Durban to make reductions in shipping.

Tim Gore, Oxfam's International Policy Advisor of Climate Change, talked with Beijing Review reporter Yu Yan about the proposal.

Can you give a brief introduction to your proposal?

Tim Gore: We apply a carbon price to shipping to reduce emissions. Part of the money collected will be used to compensate developing countries for the increase in transport costs. The remaining avenue can be directed to a Green Climate Fund.

You propose to reduce shipping emissions through the development of market-based measures. What do "market-based measures" refer to?

There is a discussion in the international Maritime Organization, looking at market-based measures to reduce the shipping emissions. It could be a levy. We can also do that in a way which also generates financing. We haven't decided on one scheme or another.

The critical point is how we can design a scheme which doesn't unfairly impair developing countries, and that is consistent with the principle of common but differentiated responsibilities.

According to the proposal, a significant share of the revenues collected will be used to compensate developing countries. How big is that share?

The money will flow to developing countries in two ways. Around 40 percent of revenues would go automatically back to developing countries to compensate for their increase in transport costs. And we want the vast majority of the remaining 60 percent to go to the Green Climate Fund. In total $25 billion will be raised per year, of which $10 billion will go to the Green Climate Fund.

How will the money be managed?

The scheme will be implemented by the International Maritime Organization (IMO), the regulatory authority for ships. They will design and implement the scheme. There are different options on the table for the technical design on the scheme. We leave that to the experts in the IMO.

We want the money to be collected centrally and then pass it to the Green Climate Fund, to make sure the Green Climate Fund established at last year's UN Climate Conference in Cancun, Mexico, will have stable revenue.

The EU is considering adopting the same emissions trading mechanism for shipping as it has for aviation. What's your comment on this approach?

Our proposal is no alternative to the EU's unilateral regional approach. The EU has implemented a unilateral regional approach to aviation, because it's not possible to reach a global agreement. Now they are planning a regional approach to shipping. So we are saying we need a global approach to shipping which is consistent with the principle of common but differentiated responsibilities.