THE European Union's plan to impose a carbon tax is drawing criticism from the world shipping industry and Asian nations, reports Bloomberg.

The 27-nations in the EU are drafting measures to include pollution from maritime transport from intra-EU routes in the bloc's Emissions Trading System.

It's part of the Green Deal, a radical overhaul of the economy aimed putting Europe in the lead of the fight against global warming.

Japan and South Korea joined the World Shipping Council in expressing concerns about the move. They say global emissions from ships should be regulated by the International Maritime Organisation and that regional efforts will only hinder progress.

While the IMO has pledged cut shipping emissions in half by 2050, a requirement to improve the efficiency of vessels before then has come under criticism from environmental groups for not going far enough to tackle glabol warming.

"Japan believes that extension of EU ETS to international shipping is not the suggested way forward, whether the scope is limited to intra-EU shipping only or not," the government in Tokyo told the EU.

"EU ETS in international shipping will not deliver ambitious emission reduction effects, while leaving the risk of carbon-leakage and significant distortion in global maritime transport and trades involving non-EU third countries including Japan."

The European Commission, the EU's regulatory arm, plans to unveil a revised law on its carbon cap-and-trade programme in June.

It will include tougher requirements for 12,000 companies already covered by the system and rules for the inclusion of shipping. The commission is also considering extending the carbon market to road transport and the building sector.