State calls for green tax on ships

The transport ministry, in a proposal Friday to a U.N. body, called for the introduction of a worldwide surcharge on fuel used by tankers, container ships and other ocean-going vessels to curb their carbon dioxide emissions.

It suggested to the International Maritime Organization that the surcharge, a de facto environmental tax, could be levied on fuel oils of all ocean-going ships, estimated to number in excess of 50,000.

Revenue from the surcharge would be pooled and managed as an international fund.

The fund would be used for the research and development of "eco-ships" featuring solar, wind and other renewable power, as well as for helping developing countries combat global warming.

Some of the surcharge would also be refunded to ship owners and operators in proportion to their ships' contribution to CO2 reduction. Their ships would be rated on the basis of their track record in carrying large loads and traveling a long distance on less fuel and compensated accordingly.

The ministry's Maritime Bureau hopes the surcharge system will take effect in 2014.

By the bureau's estimate, a surcharge of $30 per ton of fuel oil would generate $8.4 billion (772.5 billion yen) in annual revenue.

According to a survey by the IMO, in fiscal 2007, international maritime transport, which accounts for 90 percent of transfer of goods across borders, emitted 870 million tons of CO2, or nearly 3 percent of global total emissions and equal to the amount emitted by Germany.

While emissions from vessels that travel within a country can be regulated by its government, determining which nations will be held responsible for emissions from ocean-going vessels has been an international issue.

Vessels are often registered in one country and operated by a company in another. They are also loaded and unloaded in different countries, much like international aviation.

Japan is not the only major shipbuilding and ship-owning country to propose CO2 reduction measures for ocean-going vessels.

Denmark has suggested a surcharge system without refunds, while Norway and Germany are considering an emissions quota transactions system.

Starting in March, the IMO's Marine Environment Protection Committee will discuss the proposal from Japan's Ministry of Land, Infrastructure, Transport and Tourism, together with those from other countries.

The committee is expected to decide which measures to adopt as early as October.

Asked about the likelihood of Japan's proposal being adopted, an official at the ministry's Maritime Bureau said, "Although we foresee opposition from China and other countries that have yet to introduce energy-saving measures for their ships, we expect several countries to agree to introducing a surcharge system."

The ministry believes that, should Japan's proposal take effect in 2014, it could cut CO2 emissions from ocean-going ships throughout the world by 15 percent in 2020, compared with the current emission level.