This briefing paper analyses the impact of carbon pricing of international transport for nearly 200 countries based on their imports by sea and air. The analysis shows that, without any compensation for its impacts, carbon pricing of international shipping would be regressive, as it would impose a larger cost burden relative to GDP on many poorer countries that rely heavily on imports. This includes some small island developing states and least developed countries. It thus makes a strong case for compensating developing countries for the potential adverse impacts of carbon pricing on international transport. If this occurs and the most vulnerable countries also receive finance from the revenue raised for climate change action, they would be net beneficiaries of carbon pricing on international transport.
Contact: Dr Sarah Wykes, Lead Analyst - Environment and Climate Change, CAFOD, swykes(at)cafod.org.uk
CAFOD, the Catholic agency for overseas development, is CIDSE's member in England and Wales.