WE MUST STOP SUBSIDISING FOSSIL FUELS AND TAX THEM INSTEAD: A SHIPPING LEVY IS THE BEST WAY TO GET SERIOUS THIS YEAR

The report highlights a stark contrast between the $7 trillion in annual global fossil fuel subsidies and the limited funding for climate action. It proposes a $150 per tonne of CO2e levy on international shipping as a landmark mechanism to make polluters pay and fund a just energy transition. While supported by over 50 countries representing 66% of the global fleet, the levy is opposed by BRICS and Petro-States, who account for 68% of fossil fuel subsidies. The author contends that such a levy is legally viable and essential to keep global warming below 1.5°C.

• Global fossil fuel subsidies reached seven trillion dollars in 2022, representing 7.1% of global GDP. This amount is significantly higher than the $1.5 trillion in public and private climate finance recorded for the same year.
• The average global subsidy for fossil fuel-based CO2 emissions is $190 per tonne, which is higher than any existing national carbon tax, including Uruguay's highest rate of $167 per tonne.
• A proposed universal shipping levy starting at $150 per tonne of CO2e is supported by over 50 countries, including the three largest flag states: Liberia, Panama, and the Marshall Islands. These supporters represent 66% of the global shipping fleet by tonnage.
• Opposition to the shipping levy is led by BRICS and Petro-States (including OPEC, USA, Australia, and Norway), who collectively account for 68% of global fossil fuel subsidies, totaling $4.7 trillion.
• The author rejects claims that a shipping levy is 'uniquely harmful' to developing countries or beyond the legal remit of the IMO, citing impact assessments and independent research that show revenues can counter increased costs for developing nations.
• Fossil fuel subsidies create severe global inequities, as the per capita subsidy in some nations exceeds the entire GDP per capita of other countries. For example, Saudi Arabia's per capita subsidy of $6,996 in 2022 exceeded the average GDP per capita of Middle-Income Countries ($6,254).

APA

De Beukelaer, C. (2025). WE MUST STOP SUBSIDISING FOSSIL FUELS AND TAX THEM INSTEAD: A SHIPPING LEVY IS THE BEST WAY TO GET SERIOUS THIS YEAR. Fossil Fuel Non-Proliferation Treaty Initiative. https://www.fossilfueltreaty.org/s/We-Must-Stop-Subsidising-Fossil-Fuels-and-Tax-them-Instead-A-Shipping-Levy-is-the-Best-Way-to-get-Se.pdf

Chicago

De Beukelaer, Christiaan. WE MUST STOP SUBSIDISING FOSSIL FUELS AND TAX THEM INSTEAD: A SHIPPING LEVY IS THE BEST WAY TO GET SERIOUS THIS YEAR. Fossil Fuel Non-Proliferation Treaty Initiative, 2025. https://www.fossilfueltreaty.org/s/We-Must-Stop-Subsidising-Fossil-Fuels-and-Tax-them-Instead-A-Shipping-Levy-is-the-Best-Way-to-get-Se.pdf.

Wikipedia

{{cite report |last1=De Beukelaer |first1=Christiaan |title=WE MUST STOP SUBSIDISING FOSSIL FUELS AND TAX THEM INSTEAD: A SHIPPING LEVY IS THE BEST WAY TO GET SERIOUS THIS YEAR |publisher=Fossil Fuel Non-Proliferation Treaty Initiative |date=February 2025 |url=https://www.fossilfueltreaty.org/s/We-Must-Stop-Subsidising-Fossil-Fuels-and-Tax-them-Instead-A-Shipping-Levy-is-the-Best-Way-to-get-Se.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{debeukelaer2025must, author = {De Beukelaer, Christiaan}, title = {{WE MUST STOP SUBSIDISING FOSSIL FUELS AND TAX THEM INSTEAD: A SHIPPING LEVY IS THE BEST WAY TO GET SERIOUS THIS YEAR}}, institution = {Fossil Fuel Non-Proliferation Treaty Initiative}, year = {2025}, month = feb, url = {https://www.fossilfueltreaty.org/s/We-Must-Stop-Subsidising-Fossil-Fuels-and-Tax-them-Instead-A-Shipping-Levy-is-the-Best-Way-to-get-Se.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }