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The article argues that Canadian support for UN-imposed carbon levies on shipping and aviation undermines national sovereignty and could exacerbate inflation without significantly reducing emissions, urging a reevaluation of these policies given current economic conditions.
The UN's unprecedented taxation of aviation and shipping may be a step too far for Canadians who, these days especially, value their sovereignty and independence.
. If implemented, the UN levies will raise global shipping and international flying costs, adding to global inflation. They would also be an important precedent, increasing the power and expanding the budgets of unelected institutions.supported the initial decisions to levy carbon taxes for shipping and require carbon offsets for aviation.
In light of the Carney government's suspension of the consumer carbon tax, however, and given the current state of the economy, Canadians should take a new look at Ottawa's support for the global carbon taxes. Though they largely support global climate-change policies and view the UN positively, Canadians are also, especially in the Trump era, fierce defenders of their sovereignty. They shouldn't support unelected UN bureaucrats taxing them.
Although shipping produces just two and a half per cent of the world's greenhouse gas emissions a UN tax on would add to the price of every shipped good in the world. Shipping fuel prices would double. Ships currently move 80 per cent of global trade, a share that is expected to grow.
The IMO estimates the planned tax would increase its budget by a year — likely without lowering emissions appreciably since there simply isn't enough no-carbon or low-carbon fuel available that meets the IMO's criteria. The IMO does not count liquefied natural gas as low-carbon, though it is widely available, and its global production could be ramped up, including in Canada.of global greenhouse gas emissions is also small, just 2.5 per cent.
Even so, in 2024 ICAO elevated net-zero in aviation to be on a par with its long-standing goal of zero aviation fatalities. Because"sustainable aviation fuel" accounts for less than one per cent of global aviation fuel consumption, ICAO's requirement that airlines purchase carbon credits will add costs to international flights without reducing emissions much. Little public debate or Canadian media coverage preceded the Trudeau government's votes in support of the global carbon taxes.
Although public pushback against the national carbon tax was robust, the Canadian public hardly noticed the planned global carbon taxes. The Conservative party did register its opposition,, result in Canadian job losses and lead to Canadian funds being sent abroad. The Canadian Taxpayers Federation was also opposed,The Trump administration is working to stop the imposition of the UN agency taxes.
If Canada implements the shipping and aviation taxes, while the United States does not, this will create new challenges for the Canadian industries. Many international travellers from Canada would be even more likely drive to U.S. airports, further depriving Canadian airlines of revenue. American ports and shippers would gain a similar advantage over Canadian ports, as well. Ottawa's positions on the global carbon taxes on shipping and aviation are bound to affect relations with the United States.
The Trump administration will likely take forceful action to prevent implementation of the new taxes. Canada may want to avoid a new confrontation with the U.S. and join Greece, Japan, Argentina and Italy in voting against the IMO's proposed carbon tax and encourage countries organizing to prevent implementation of the aviation tax. The UN's unprecedented taxation of aviation and shipping may be a step too far for Canadians who, these days especially, value their sovereignty and independence.
Many in Canada view climate change as a major problem. But taxation by unelected institutions is not the way to address it. Brenda Shaffer, faculty member at the U.S. Naval Postgraduate School's Energy Academic Group, is a senior fellow at the Atlantic Council's Global Energy Center.
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