Pricing Emissions in International Aviation and Maritime Transport: Subsidy reform and other options
At last year's United Nations Climate Change Conference (COP 28), a new coalition of 13 countries chaired by the Netherlands was formed to phase out fossil fuel subsidies. This coalition is exploring how to effectively address sectors that have broad exemptions on fossil fuel taxation—including aviation and shipping. According to a 2022 review, these sectors make up almost half of fossil fuel subsidies in the Netherlands.
Together, aviation and shipping represent 6% of global CO2 emissions, and both sectors are rapidly growing. Their reform presents particular challenges. The majority of both aviation and shipping are primarily international, requiring engagement with international treaties and governance mechanisms. They are also both highly competitive sectors, raising concerns about the displacement of industry to jurisdictions with lower standards.
Fossil fuel subsidy reform aims to create an even playing field for sectors with lower emissions and encourage a more rapid transition to sustainable fuels. This public online forum, including member states from the coalition and international experts, examines the opportunities and challenges to fossil fuel subsidy reform in the shipping and aviation sectors.
Agenda
Welcome and Introduction
Dutch Ministry of Climate Policy and Green Growth
Fossil Fuel Subsidy Reform Complexity, Urgency, and Multilateral Agenda Setting
Dr. Ivetta Gerasimchuk, Director, Energy Program, International Strategy, IISD
Fossil Fuel Subsidy Reform in the Aviation Sector
Giovanni Sgaravatti, Energy and Climate Research Analyst, Bruegel
Fossil Fuel Subsidy Reform in the Shipping Sector
Dr. Tristan Smith, Associate Professor, University College London