Maersk Tankers CEO says shippers will pay carbon taxes

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The head of a major shipping company wants a carbon tax for his industry by 2025, and he’s confident his customers are willing to pay for it.

Making shipping pay for its pollution is vital if the industry wants to decarbonize by 2050, said Christian Ingerslev, chief executive officer of Maersk Tankers A/S, which manages the world’s largest fleet of vessels that haul oil products. Eliminating emissions before mid-century would give the sector a chance to align with the Paris Agreement’s goal of limiting global warming to 1.5 degrees Celsius from pre-industrial levels, according to a study.

A high carbon price could trigger a surge in the cost of marine fuel, the industry’s single biggest expense. A.P. Moller-Maersk A/S previously pitched a fee of $150 a ton for CO2, which would increase the cost of a common marine fuel in Rotterdam by about 75%, using current figures. Commodities giant Trafigura Group Pte suggested $250-$300 a ton.

Ingerslev said he doesn’t have a specific starting price in mind, but he wants it “high.” Even so, the effect will be insignificant because shipping — which transports more than 80% of goods traded globally — is still cheap, he said.

Source: Bloomberg