Overview

• The International Maritime Organization (IMO) has approved a global carbon pricing system for shipping, marking the first sector-wide emissions tax of its kind.
• Starting in 2028, ships exceeding emissions thresholds will face fees of $100 per ton for moderate excess emissions and $380 per ton for higher levels.
• The framework includes carbon credit trading to encourage cleaner fuel adoption and operational efficiency, with revenues projected at $10 billion to $40 billion annually.
• The U.S., under the Trump administration, withdrew from negotiations, opposing the measures and threatening reciprocal actions against fees on American ships.
• Critics, including climate-vulnerable nations and environmental groups, argue the deal falls short of the emissions reductions and funding needed to meet urgent climate goals.