Publication type
Journal article
Date
Source
Review of European, Comparative & International Environmental Law
Carbon pricing for international shipping, equity, and WTO law
Since a groundbreaking agreement in July 2023, the International Maritime Organization (IMO) has been advancing the implementation of a GHG emissions pricing instrument for international shipping. However, some IMO member states argued in negotiation rounds that World Trade Organization (WTO) law may impede its implementation. This article investigates if the WTO law can indeed limit the implementation of an IMO GHG pricing instrument and discusses:
- The compatibility of current proposals tabled at the IMO with the General Agreement on Trade in Services (GATS) and the General Agreement on Tariffs and Trade (GATT).
- The possibility that the constraints of the WTO law on the GHG pricing instrument limit the IMO’s ability to address equity concerns via the implementation of exemptions for developing countries.
In doing so, this article addresses potential challenges that may arise under existing international trade agreements such as the GATT and the GATS, shedding light on the procedural and design aspects that could influence the likelihood of such challenges.