Key Points:
- The IMO concludes talks with a majority of nations supporting the implementation of a global emissions levy targeting the shipping industry.
- Thirty-four countries supported a universal greenhouse gas price, a significant increase from previous negotiations.
- The levy is part of the IMO’s broader greenhouse gas strategy, aiming to reduce shipping emissions and achieve net-zero emissions by mid-century.
- Proponents advocate for ambitious measures to combat emissions, including a proposed levy of $150 per ton of carbon.
Two weeks of deliberations at the International Maritime Organization (IMO) in London concluded with most nations expressing support for implementing the world’s first global emissions levy targeting the shipping industry. This levy addresses the sector’s significant contribution to global carbon emissions, estimated at around 3%.
During the negotiations, thirty-four countries, representing both high- and low-income states, voiced their endorsement of a universal greenhouse gas price. This surge in support, compared to previous talks in 2023, signals a growing momentum behind adopting the emissions levy.
The IMO’s latest round of talks marked the first convention since maritime nations agreed on a new greenhouse gas strategy in July last year. This strategy aims to reduce shipping emissions by 30% by 2030, at least 70% by 2040, and achieve net-zero emissions by mid-century. As part of this agreement, the IMO committed to introducing an emissions price in 2025 to bridge the gap between fossil fuels and green energy, with revenue generated to facilitate a fair transition.
However, alternative proposals suggest incorporating the levy as part of broader measures, garnering support from at least 14 countries. Sandra Chiri, from the Ocean Conservancy, emphasized that “The UN is on the edge of adopting the world’s first-ever global emissions price, but the policy will only be as successful as countries make it to be.”
The shipping industry, responsible for transporting over 90% of global trade, poses significant challenges for decarbonization due to its reliance on fossil fuels. Proponents of the emissions levy, including Pacific and Caribbean Island states, advocate for ambitious measures to combat emissions, such as a proposed levy of $150 per ton of carbon.
IMO delegates are expected to continue discussions in the fall, focusing on refining policy details to incentivize shipping decarbonization and ensure a sustainable transition towards cleaner energy sources.
