15 Apr 2025

Major Nations Agree Emissions Fee on Ships

by Bonnie | | 0

Without USA participation, the International Maritime Organization which regulates international shipping agreed upon a minimum fee of $100 per ton of greenhouse gas emissions by ships above specified thresholds.

In effect, this is the first global tax on emissions of greenhouse gases. It is due for formal adoption at a meeting in October 2027. Shipping is responsible for 3% of global greenhouse gas emissions. IMO has a goal of getting shipping to “net zero” by 2050.

IMO also set new standards to phase in cleaner fuels for ships.

The levy is expected to raise $11 billion to $13 billion per year for its net zero fund, which will invest in advances necessary for green shipping, reward ships with low emissions and support developing countries to keep them from being left behind.

Critics worry that some ships may choose to pay the fees and continue polluting rather than upgrade their fuel or equipment to reduce emissions.

Click here for more details.

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