Initial $56 carbon tax needed to push owners toward alternative fuels, says Japan

Japan’s proposal to the International Maritime Organisation (IMO) for a market-based measure (MBM) to encourage decarbonisation is likely to lead to an initial carbon levy of around $56 per tonne.

As earlier reported by TradeWinds Japan is proposing a so-called feebate scheme.

The idea is a carbon levy on emissions will generate revenue to rebate owners which have taken on the additional costs of buying higher price zero-emission fuels.