Without reaching an agreement, the Summit for a New Global Financing Pact ends without a levy on the greenhouse gas emissions caused by international shipping.
A deal to impose a charge on greenhouse gas emissions from international shipping has not been reached by participants in the Paris Summit on the environment and finance.
The two-day summit of world leaders and financial titans to combat poverty and climate change came to a close on Friday without making any significant declarations.
A New Global Financing Pact Summit was hosted by French President Emmanuel Macron. John Kerry, a climate ambassador, and Janet Yellen, the US Treasury Secretary, represented the US.
Li Qiang, Prime Minister 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.
The International Maritime Organisation, the United Nations body that oversees shipping, will convene in July and may vote to embrace the idea of a global levy on shipping emissions.
$100 billion in annual tax receipts
Significant support of the tax in Paris would have given Macron a symbolic victory since some analysts think it might raise $100 billion annually.
There is no justification for not taxing this sector, which is tax-exempt, according to Macron.
The French president, however, asserted that the US and Cina were opposed to the notion.
“If China, the US, and a number of important European nations are not on board, then you would put in place a tax that would have no impact,” he continued.
According to proposed tax legislation, the funds earned would go towards underdeveloped nations to assist them in overcoming the effects of climate change. The levy was referred to as “a very constructive suggestion” by US Treasury Secretary Janet Yellen.
I believe I would concur with President Macron’s explanation of the rationale behind why that would be reasonable, and the United States will consider it, she continued.
The suggestion, which might be a crucial step towards getting a heavily polluting industry to donate towards the expenses of combating climate change, was not apparent as to which nations present at the conference supported it.
Almost 3% of greenhouse gas emissions are attributed to shipping, according to the International Maritime Organisation.
According to a research by the European Parliament, by 2050, its share may have increased significantly.
No official decisions were to be made during the Paris conference, but Macron had promised to present a to-do list and a tool for measuring 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.
In an effort to raise more money, environmentalists have also called for taxes on financial transactions and the use of fossil fuels, although wealthy nations don’t seem to be very interested in either of these two ideas.
Regarding the actual announcements made in Paris, the International Monetary Fund provided some fragile nations with special drawing rights assets valued at $100 billion.
Deals are made
Two deals were announced on the first day of the summit. According to French officials, China and other creditors helped debt-ridden Zambia restructure $6.3 billion in loans.
Senegal also agreed to support initiatives to enhance its access to energy and raise its proportion of renewable energy to 40% by 2030 with the help of the European Union and its Western partners.
Only two of the top leaders from the Group of Seven most progressive countries were present: French President Emmanuel Macron and German Chancellor Olaf Scholz. Many representatives from developing and climate-vulnerable countries participated.