The report entitled "Out of the Bunker - Time for a fair deal on shipping" says that it is possible to raise billions of dollars from penalties for greenhouse gas emissions and use this money to tackle climate change that is hurting developing countries.
According to the Oxfam proposal, introducing a carbon price of US$25 per ton of bunker fuel would generate about US$25-billion a year. The money would be split between compensating developing countries for marginally higher import costs that would result from this carbon price and contributing US$10-billion to the Green Climate Fund to assist in tackling climate change in developing countries.
The report claims that the carbon price would increase the costs of global trade by 0,2% or just US$2 for every US$1000 traded. In South Africa the import costs would rise by 0,14% and the country would receive US$200-million in compensation of the higher costs.
On the other hand, the report claims, Oxfam's Tim Gore - a policy advisor on climate change and author of the report - says that the research done by his organisation had shown that the costs are affordable for the planet and that it's time for the shipping industry to become part of the solution to climate change.
Total emissions from international shipping are about three percent of the global emissions. However, the WWF says that after more than a decade of delays, there is still no impetus to strike a breakthrough agreement on shipping emissions.