It’s time for the shipping industry to pay up: The shipping industry’s zero-tax status could be changing, with proposals that the industry pay a global levy for its carbon emissions to encourage it to transition away from hydrocarbons, Reuters reports. If applied by the International Maritime Organization (IMO), the levy would help raise an annual USD 100 bn to go towards developing nations hard hit by climate change. The levy is one of the ideas on the agenda of The Summit for a New Global Financial Pact taking place in Paris later this month. The IMO will then meet in early July to potentially set a timeframe for introduction of the levy if momentum is built.

About the proposal: A group of Pacific nations, led by the Marshall Islands, are suggesting a levy that starts at USD 100 per ton, moving upwards from there to make fossil fuels as expensive as cleaner fuels. This could raise up to USD 100 bn in the medium term from the shipping industry, which emits 2.9% of the world's greenhouse gasses. The group of nations want the majority of funds channeled to countries most susceptible to climate change, with the remaining funds directed to developing countries to help them build up green shipping industries. However, the International Chamber of Shipping wants the bulk of the funds raised from the tax to go back to the shipping industry to help it subsidize its green transition.

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Buses are ahead of the game in the EV transition: Nearly half of the world’s buses will be entirely electric by 2032, a decade before passenger vehicles are expected to reach the same mark, Bloomberg reports, citing BloombergNEF’s annual Electric Vehicle Outlook. By 2032, three out of four buses sold will be electric, the report said, whereas commercial trucking is also decades away and scooters are “moving slowly.”

Possible reasons for the faster switch: Government transport initiatives to turn buses electric often replace fossil fuel buses all together rather than keep both on the road, Bloomberg writes, citing examples from Berlin and New York, as well as US school districts. Additionally, the relatively slow speed of buses means that the driving range is extended compared to other vehicles, especially as the batteries can charge up slightly each time the bus stops. Given that most bus fleets park in a centralized area, the logistics of charging are streamlined. The price of EV buses have also become similar to diesel-powered alternatives given that fuel costs are minimal, and the electric buses do not require oil changes, air filters, or spark plugs.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Net zero targets set by the world's largest fossil fuel companies are “largely meaningless” given their exclusion of Scope 3 emission targets, short-term reduction plans, and commitments to phase out fossil fuel extraction and production, a new study finds. (Reuters)