The Paris Summit on Finance and Climate came up short of reaching an agreement to impose a charge on greenhouse gas emissions from international shipping.
The two-day summit of world leaders and financial titans to combat poverty and climate change came to a close on Friday without making a significant declaration. Future changes to the international financial system will be evaluated within the next two years, according to French President Emmanuel Macron, who organized the meeting.
The International Maritime Organization, the United Nations body that oversees shipping, will convene in July and might potentially embrace the idea of a global tax on the greenhouse gas emissions caused by international shipping.
Significant support for it in Paris would have given Macron a symbolic victory since some analysts estimate that a tax on shipping alone might raise $100 billion annually.
“This industry is tax-free. And there’s no justification for not taxing it, said Macron.
The French president, however, said that China and the United States were opposed to the plan.
He continued, “If China, the United States, and several important European countries are not on board, then you would put in place a tax that would have no impact.”
To aid them in coping with the effects of climate change, developing nations would get funding from taxes.
The levy was described by U.S. Treasury Secretary Janet Yellen as “a very constructive suggestion.”
I believe I would concur with President Macron’s explanation of the rationale behind why that would be appropriate, and the United States will consider it, she continued.
The suggestion, which might be a crucial step in persuading a sector with significant emissions to contribute to the cost of combating climate change, was not apparent as to which countries present at the summit supported it.
Almost 3% of greenhouse gas emissions are attributed to shipping, according to the International Maritime Organization. According to research by the European Parliament, the share could significantly rise by 2050.
No formal decisions were to be made at the meeting that was coming to an end in Paris, but Macron had promised to offer a to-do list and a mechanism for tracking progress. Such a paper has not yet been made public.
The summit attendees had been asked by a number of campaigners and non-governmental groups to ensure that wealthy countries agree to debt relief for developing countries, including the cancellation of loans. Additionally, a language for debt suspension for nations affected by harsh weather conditions was addressed.
Activists are also advocating for a tax on the fossil fuel sector and another one on financial transactions to raise more money, but it seems that wealthy nations are not very supportive of these two ideas.
The International Monetary Fund has made $100 billion worth of assets, known as Special Drawing Rights, available to some fragile countries, according to announcements made in Paris. The French presidency then announced that 40% of its own COVID-19 pandemic assets will be shared.
Two deals were announced on the first day of the summit. According to French officials, Zambia, which is heavily in debt, has agreed to restructure $6.3 billion in debts with a number of creditors, including China. Additionally, Senegal secured an agreement with the European Union and its friends in the West to support its initiatives to enhance energy access and raise its proportion of renewable energy to 40% by 2030.
Only two of the senior leaders from the Group of Seven most developed countries — French President Emmanuel Macron and German Chancellor Olaf Scholz — were there, and most of the attendees were from developing and climate-vulnerable countries.
John Kerry, a climate envoy, and Yellen represented the United States. Prime Minister Li Qiang of China, President Luiz Inacio Lula da Silva of Brazil, President von der Leyen of the European Commission, Ajay Banga of the World Bank, and Kristalina Georgieva of the IMF were also there.
Yellen expressed her satisfaction at the U.S. and China’s ability to work together in the fight against climate change during Friday’s closing event, which also featured Qiang.
We have a duty to cooperate on international issues since we are the two biggest economies in the world, she said. “It’s something we can do, and the world expects it of us.”
After U.S. President Joe Biden justified his scathing public criticism of China, in which he referred to President Xi Jinping as a dictator, she made her comments. According to Biden, his comments won’t harm relations between the United States and China, and he still plans to meet with Xi shortly.
On Friday, environmentalists gathered in the heart of Paris to demand that polluters pay for climate damage.
Without making the polluters pay, there won’t be climate justice, according to campaigner Patience Nabukala of the Fridays for Futures Uganda organization. People from countries like mine cannot afford to lose any more lives or property, they say.
