Stakeholders in the context of the shipping industry's call for a global carbon tax include:

1. Shipping Companies: These are the primary stakeholders as they are directly affected by any regulatory
changes, such as the imposition of a carbon tax. Their operations and costs will be directly impacted.

2. Ship Owners: Ship owners have a significant interest in any regulations or taxes imposed on the industry, as
they are responsible for investing in and operating the vessels.

3. International Chamber of Shipping (ICS): As a representative body for the global shipping industry, the
ICS plays a key role in advocating for industry interests and participating in discussions on regulatory matters.

4. International Maritime Organization (IMO): The IMO is the UN agency responsible for regulating
international shipping. It sets standards and regulations for the industry, making it a crucial stakeholder in any
discussions related to emissions reduction and carbon taxes.

5. National Governments: Governments around the world have a stake in regulating the shipping industry, as
it can impact their environmental policies, trade competitiveness, and revenue generation through taxation.

6. Environmental Organizations: Environmental groups have a vested interest in reducing emissions from
the shipping industry to mitigate climate change and minimize environmental impacts on oceans and marine life.

7. Consumers: Consumers indirectly have a stake in shipping regulations as they may experience changes in
prices and availability of goods due to increased costs associated with emission reduction measures.

8. Port Authorities: Port authorities may be affected by any changes in shipping practices or regulations, as
they manage port infrastructure and operations that are critical for the shipping industry.

9. Labor Unions: Labor unions representing maritime workers may have concerns about the potential impact
of emission reduction measures on employment and working conditions within the industry.

Supply Chain

In the context of the articles provided regarding the shipping industry's call for a global carbon tax,
the supply chain refers to the network of processes involved in transporting goods by sea from their
point of origin to their destination. This includes:

1. Sourcing and Procurement: Obtaining raw materials or products from suppliers, which may be
located in various parts of the world.

2. Shipping: Transporting goods by ships across oceans and waterways to reach their intended
markets or destinations.

3. Port Operations: Handling goods at ports, including loading and unloading cargo, customs
clearance, and storage.

4. Distribution: Moving goods from ports to distribution centers, warehouses, or directly to retailers
or consumers.

5. Retail and Consumption: The final stage where products are sold to consumers or used by
businesses.

The shipping industry plays a crucial role in the global supply chain by facilitating the movement of
goods between countries and continents. Any changes or regulations imposed on the shipping
industry, such as a carbon tax, can have significant implications for the efficiency, cost, and
sustainability of the supply chain as a whole.

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Climate change: Shipping industry calls for new global carbon tax

21 April 2021

The shipping industry wants global agreement on a new carbon tax

Climate change: Shipping industry calls for new global carbon tax - BBC News

By Jonathan Josephs

The global shipping industry is calling on the world's governments to tax its carbon emissions.

Groups that represent more than 90% of the global fleet say the measure is needed to tackle climate

change.

"A global solution is the only one that's going to work", Guy Platten, secretary-general of the

International Chamber of Shipping told the BBC.

The tax would incentivise ship owners to invest in new technology, he said.

The shipping sector is one of the big carbon emitters, and is responsible for more than 2% of global

emissions. If the industry was a country it would be the sixth biggest polluter, above Germany.

While shipping was not directly included in the Paris climate change agreement the sector has been

making efforts to clean up its act.

Need to cut emissions

A recognition of this need to change led the UN agency that regulates shipping, the International

Maritime Organisation (IMO), to target cuts in greenhouse gas emissions by 2050.

However, this plan was criticised by environment groups which said the plan will see emissions from

ships grow for several decades.

There have been other efforts, including the development of a $5bn fund to develop carbon free

shipping technology.

But now the industry wants all governments to impose "a price on carbon" to give ship owners a

commercial imperative to change, says Mr Platten.

A worldwide carbon pricing scheme would need to be negotiated through the IMO. A group led by the

ICS has asked the agency for discussions to start "as soon as possible and before 2023, with a view to

taking some decisions".

Implementing a new tax will be complex, says Guy Platten, secretary-general of the International

Chamber of Shipping
Complex process to agree

As well as the ICS, the call has backing from the shipowner's organisation Bimco, Cruise Lines

International Association and the World Shipping Council.

The timeline is a recognition that this will be a complex process that is likely to take at least two years
to

enact.

Such a tax will almost certainly lead to extra costs for shipping companies that will be passed on to
their

customers, which could be problematic for export dependent economies.

Demand for consumer goods means shipping firms will need to invest in green technology

Mr Platten said: "We need to reassure governments who, perhaps from the more remote places, feel

that their supply chains might be disrupted because shipping becomes more expensive".

That is likely to filter through to consumers. The boss of the world's biggest shipping company,
Maersk,

recently told the BBC the cost of tackling climate change in the industry would "translate into

something like six cents per pair of sneakers".

Tax ideas

Amid concern that rising sea levels threaten the future of their countries, the Pacific nations of the

Marshall Islands and Solomon Islands are calling on the IMO to introduce a $100 per tonne levy on

greenhouse gas emissions.

This is seen as ambitious by some and it's not clear what shape a carbon tax on the shipping industry
will

take.

It would also have a bigger impact on smaller shipping companies who are likely to struggle more with

the costs of new, cleaner technology.

Bodies representing more than 90% of the global shipping fleet back a carbon tax

Mr Platten said: "It's complex, it needs to be a global solution, and not regional solutions, as has been

mooted by various places around the world. So that's why we're calling for this discussion to start
now."

Discussions could begin at an IMO meeting in June.

Professor Alan McKinnon of Germany's Kuehne Logistics University says these long-debated
marketbased measures are needed to cut shipping emissions.

"They would certainly give all the maritime stakeholders a much stronger financial incentive to

decarbonise the sector," he said.

US climate envoy John Kerry visited several Asian countries this month ahead of President Biden's

summit

Shipping faces showdown over greenhouse gases

BBC

rd July 2023

By Matt McGrath & Malcolm Senior

The shipping industry is under growing pressure to dramatically curb planet-warming emissions from

smokestacks.

Maritime transport emits as much CO2 in a year as Germany but is the biggest global sector without a

goal for cutting emissions to "net zero".

Some delegates at the UN summit starting on Monday want this by 2050 and emissions halved by
2030.

Campaigners say it would be the climate "deal of the decade" if agreed.

Reaching "net zero" would mean that any remaining shipping emissions were matched by actively

removing greenhouse gases from the atmosphere.

For years, the shipping industry, governments and environmental groups have wrangled on how to

make the transport of goods by sea greener.

The issue was deemed just too difficult to be included in the 2015 Paris climate pact to keep down

global warming.

It matters because around 90% of the products and goods the world consumes travel by ship.

These vessels often burn highly polluting fuels which contribute as much as 3% of the world's global

carbon dioxide emissions, roughly the same amount as that of Germany or 243 coal plants.

That could grow by as much as 50% by the middle of this century if stronger action isn't taken, experts

have warned.

The shipping industry's current plans only envisage a halving of emissions by the middle of this
century,

a commitment that scientists say is far out of line with the Paris climate agreement.

This week, under the control of the UN's International Maritime Organisation (IMO), delegates from
175

shipping countries will meet in London to try and agree on a new timeline for completely
decarbonising

their industry.

Campaigners want to see a much tougher target, with a reduction of approximately half by 2030 and a

new net-zero goal for 2050. Others want to go further still and see a full decarbonisation brought

forward to 2040.

"If member states get this right, they can set the shipping sector in line to meet the Paris temperature

targets and promote investment in green technologies that will completely transform the sector," said

Kerrlene Wills, Director for Ocean and Climate, UN Climate Foundation.

IMMany countries are in favour - and some shipping companies also want to push forward with plans

for cleaner transport. The world's second largest container shipping line, Maersk, are taking a bullish

approach, setting their own goal of zero emissions by 2040.

Previous attempts to strengthen climate ambition at the IMO, have fallen foul of a number of
countries

such as China, India and Saudi Arabia, who are keen to protect their own domestic shipping interests.

Observers say that if the London meeting can agree these new goals for all shipping, it would the
biggest

advance against climate change since the Paris agreement.

"You would quite genuinely have a climate agreement not just of the year, but probably of the decade,"

said John Maggs, from the Clean Shipping Coalition of campaigners, speaking to reporters.

Within the wider industry, there is a recognition that reform is necessary but there is a concern that
new

targets will be too challenging and expensive.

However recent research shows that cutting shipping emissions in half this decade would only add
some

10% to the total costs of operations.

Last week, the Secretary-General of the IMO, Kitack Lim urged delegates "to make the compromises
and

find solutions", describing 2023 as "a year of decisive climate action".

His views were echoed by Faig Abbasov from campaigners Transport and Environment:

"Waiting until 2050 to decarbonise is a bit like waiting until your house burns before you call the fire

brigade… what is needed is political will; IMO needs to either step up or ship out!"

ChatGPT

The global shipping industry is advocating for a new carbon tax to address climate change. This
measure is supported by groups representing over 90% of the world's fleet, aiming to incentivize
investment in cleaner technology. The International Maritime Organization (IMO) has targeted
emissions reductions by 2050, but critics argue this won't be sufficient. Discussions for a global
carbon pricing scheme through the IMO are urged to start by 2023. However, implementing such a
tax is complex and could lead to increased costs for shipping companies and consumers. Meanwhile,
there's increasing pressure for the shipping industry to drastically cut emissions, with calls for net-
zero emissions by 2050. Debate on tougher targets will take place at a UN summit, with expectations
for significant progress toward decarbonization. Despite challenges, there's growing recognition of the
necessity for reform within the shipping industry to address climate change effectively.

User

Give key pointers

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Key Pointers:
Shipping Industry's Proposal: The shipping industry is advocating for a global carbon tax to address
its significant carbon emissions.

Support for Carbon Tax: More than 90% of the global fleet supports this measure, emphasizing the
need for a global solution to tackle climate change.

Incentivizing Technology Investment: The proposed tax aims to incentivize ship owners to invest in
cleaner technology, thereby reducing emissions.

International Maritime Organization (IMO) Targets: The IMO has targeted emissions reductions by
2050, but critics argue these targets may not be ambitious enough.

Complexity of Implementation: Implementing a carbon tax would be complex and may result in
increased costs for shipping companies and consumers.

Pressure for Decarbonization: There's increasing pressure for the shipping industry to cut emissions,
with calls for net-zero emissions by 2050.

UN Summit Discussions: Discussions on tougher emission reduction targets are expected to take place
at a UN summit.

Industry Recognition of Need for Reform: There's a growing recognition within the shipping industry
of the necessity for reform to effectively address climate change.

User

Give main statements made

ChatGPT

Main Statements Made:

Global Shipping Industry Calls for Carbon Tax: The shipping industry is urging governments
worldwide to impose a carbon tax on its emissions, emphasizing the need for a global solution to
combat climate change.

Need for Incentives to Invest in Clean Technology: The proposed carbon tax aims to incentivize ship
owners to invest in new technology that reduces emissions, thereby contributing to climate change
mitigation efforts.

Criticism of Current Emission Reduction Plans: Critics argue that current emission reduction targets
set by the International Maritime Organization (IMO) are insufficient to address the scale of
emissions from the shipping industry.
Complexity of Implementation: Implementing a carbon tax is acknowledged as a complex process that
may lead to increased costs for shipping companies, potentially impacting consumers and export-
dependent economies.

Growing Pressure for Decarbonization: There is increasing pressure on the shipping industry to
significantly reduce emissions, with calls for more ambitious targets such as achieving net-zero
emissions by 2050.

Importance of International Collaboration: Collaboration through international organizations like the

IMO is deemed crucial for implementing effective measures to reduce shipping emissions globally.

Recognition of Industry Reform: There is recognition within the shipping industry of the need for
reform to align with climate change mitigation goals, although concerns about the challenges and
costs associated with meeting tougher emission targets persist.

User

Identify the stakeholders

ChatGPT

Stakeholders in the context of the shipping industry's call for a global carbon tax include:

Shipping Companies: These are the primary stakeholders as they are directly affected by any
regulatory changes, such as the imposition of a carbon tax. Their operations and costs will be directly
impacted.

Ship Owners: Ship owners have a significant interest in any regulations or taxes imposed on the
industry, as they are responsible for investing in and operating the vessels.

International Chamber of Shipping (ICS): As a representative body for the global shipping industry,
the ICS plays a key role in advocating for industry interests and participating in discussions on
regulatory matters.

International Maritime Organization (IMO): The IMO is the UN agency responsible for regulating
international shipping. It sets standards and regulations for the industry, making it a crucial
stakeholder in any discussions related to emissions reduction and carbon taxes.

National Governments: Governments around the world have a stake in regulating the shipping
industry, as it can impact their environmental policies, trade competitiveness, and revenue generation
through taxation.
Environmental Organizations: Environmental groups have a vested interest in reducing emissions
from the shipping industry to mitigate climate change and minimize environmental impacts on oceans
and marine life.

Consumers: Consumers indirectly have a stake in shipping regulations as they may experience
changes in prices and availability of goods due to increased costs associated with emission reduction
measures.

Port Authorities: Port authorities may be affected by any changes in shipping practices or regulations,
as they manage port infrastructure and operations that are critical for the shipping industry.

Labor Unions: Labor unions representing maritime workers may have concerns about the potential
impact of emission reduction measures on employment and working conditions within the industry.

User

What is the supply chain

ChatGPT

The supply chain refers to the network of organizations, people, activities, information, and resources
involved in the production, handling, and distribution of goods or services from the point of origin to
the point of consumption. It encompasses all the steps and processes involved in bringing a product or
service to the end consumer.

A typical supply chain involves various stages, including:

Sourcing and Procurement: This involves sourcing raw materials or components needed for
production and procuring them from suppliers.

Production or Manufacturing: This stage involves the actual manufacturing or assembly of products
using the raw materials or components obtained in the previous stage.

Distribution and Logistics: Once the products are manufactured, they need to be transported to
distribution centers or warehouses before being delivered to retailers or directly to customers.

Retail: Products are made available to customers through retail outlets, online stores, or other
channels.

Consumption: The end consumers purchase and use the products.

Each of these stages involves various processes, including transportation, inventory management,
warehousing, packaging, and information management. Effective supply chain management ensures
that goods or services are produced and delivered efficiently, at the right time, in the right quantity,
and at the right cost, while minimizing waste and maximizing customer satisfaction.

RISKS

Cost Increases: Implementing a carbon tax could lead to increased operating costs for shipping
companies, which may ultimately be passed on to consumers. This could impact the affordability and
accessibility of goods transported by sea.

Competitiveness: Shipping companies operating in regions without a carbon tax may gain a
competitive advantage over those operating in regions where such taxes are imposed. This could lead
to market distortions and uneven playing fields.

Supply Chain Disruptions: Any changes in shipping costs or regulations could disrupt global supply
chains, affecting the timely delivery of goods and causing logistical challenges for businesses.

Regulatory Compliance: Shipping companies may face challenges in complying with varying carbon
tax regulations across different jurisdictions. This could lead to administrative burdens, legal
complexities, and potential non-compliance penalties.

Reputation and Stakeholder Pressure: Companies operating in the shipping industry may face
reputational risks if they are perceived as not taking sufficient action to reduce emissions or address
environmental concerns. Pressure from stakeholders, including investors, customers, and
environmental groups, could impact business operations and brand reputation.

Political and Regulatory Uncertainty: The implementation of a global carbon tax would require
international cooperation and consensus-building among governments. Political and regulatory
uncertainties, including changes in government policies or international agreements, could affect the
feasibility and timeline of such measures.

1. Risk-Sharing Clauses: Contracts can include clauses that explicitly allocate the risks
associated with regulatory changes, such as the imposition of a carbon tax. These
clauses may specify which party (e.g., shipper, carrier, or freight forwarder) bears the
financial responsibility for complying with new regulations or absorbing any
associated cost increases.
2. Indemnification Provisions: Indemnification clauses can be included in contracts to
specify which party is responsible for covering any losses, damages, or liabilities
arising from regulatory non-compliance or unexpected costs related to carbon taxes.
This helps protect parties from financial losses resulting from unforeseen regulatory
changes.
3. Force Majeure Clauses: Contracts often include force majeure clauses that define
events beyond the control of the parties, such as changes in environmental
regulations, as grounds for excusing performance or renegotiating contractual terms.
These clauses can specify the procedure for addressing disruptions caused by
regulatory changes and allocating associated risks.
4. Performance Guarantees and Penalties: Contracts can incorporate performance
guarantees and penalties to incentivize compliance with environmental regulations,
including carbon taxes. For example, contracts may stipulate emission reduction
targets or require the use of low-carbon technologies, with penalties for non-
compliance or incentives for exceeding targets.
 5. Insurance Requirements: Contracts can include provisions requiring parties to
maintain adequate insurance coverage to mitigate the financial risks associated with
regulatory changes, including carbon taxes. Insurance policies may provide coverage
for losses resulting from regulatory non-compliance, carbon emissions liabilities, or
increased operating costs.
6. Dispute Resolution Mechanisms: Contracts can establish procedures for resolving
disputes arising from regulatory changes or disagreements over risk allocation. This
may include arbitration or mediation clauses that enable parties to resolve disputes
efficiently and amicably, minimizing disruptions to business operations.
7. Due Diligence and Compliance Obligations: Contracts may impose due diligence
and compliance obligations on parties to ensure they stay informed about regulatory
changes and take proactive measures to mitigate associated risks. This may include
monitoring regulatory developments, implementing compliance programs, and
providing regular updates to contractual partners.

By incorporating these contractual mechanisms, parties in the shipping industry can effectively
allocate risks associated with environmental regulations like carbon taxes, promote compliance,
and safeguard their interests in an evolving regulatory landscape.