U.S. Sens. Ashley Moody[1] and Rick Scott[2] drafted a letter to U.S. Commerce Secretary Howard Lutnick and Secretary of State Marco Rubio urging the Donald Trump administration to continue efforts to block a proposal by the International Maritime Organization (IMO[3]) to implement global carbon pricing tax.
The IMO next month will consider adopting pricing increase charges for shipping for carbon emissions by the vessels. The proposal[4] is designed to guide shipping companies toward zero emissions by 2050, if adopted.
“The proposal, which the IMO is taking up next month, would place an unfair burden on American citizens and businesses,” a news release from Moody’s Office said.
The memorandum[5] sent by Moody and Scott to top Trump administration officials urges continued opposition to the IMO proposal.
“The current proposal presents a direct threat to American interests. The proposed framework would impose a binding, escalating global carbon tax on maritime shipping through a system of increasingly strict emissions tiers and rising levies,” the Moody-Scott letter stated.
The original proposal was drafted in April and the intent is to lower emissions of greenhouse gas by the global shipping industry in general. The taxes on shipping companies would, theoretically, use the revenue to support and augment energy transition to carbon-gas-free ships.
But the letter from the two Senators argues the proposed program would limit American autonomy.
“Despite this enormous financial impact, the United States has virtually no influence over the policy and will receive none of the tax revenue in return. This is taxation without representation and a direct threat to the United States’ economic security,” the letter stated.
Moody and Scott reminded administration officials that the U.S. has substantial sway in the shipping industry. Global ports based in Florida include hubs in South Florida, Tampa, The Panhandle, Jacksonville and Cape Canaveral among other notable nautical centers.
That kind of impact can be used to influence the IMO, they argued.
“The senators urged the administration to immediately apply trade leverage to block the IMO framework and note this as a historic opportunity to restore our nation’s influence in global maritime policy and rapidly reassert American maritime dominance,” Moody’s news release said.
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References
- ^ Ashley Moody (www.moody.senate.gov)
- ^ Rick Scott (www.rickscott.senate.gov)
- ^ IMO (www.imo.org)
- ^ proposal (www.opportunitygreen.org)
- ^ memorandum (www.rickscott.senate.gov)