Overview

• The International Maritime Organization (IMO) has finalized a global CO2 pricing system for shipping, aiming to reduce emissions and support climate adaptation.
• Key measures include mandatory use of low-carbon fuels starting in 2028 and progressively stricter emissions thresholds through 2035.
• A new North Atlantic emissions control zone, the largest globally, will be established in 2027, imposing stricter limits on sulfur and nitrogen oxide emissions.
• Funds generated from emissions penalties will be directed toward developing countries to aid in climate adaptation and transition to greener shipping practices.
• Criticism persists from environmental groups and Pacific island states, citing insufficient ambition to achieve CO2 neutrality by 2050 and concerns over unsustainable fuel incentives.