Overview

• The International Maritime Organization (IMO) has approved a global carbon pricing mechanism to reduce shipping emissions, marking the first industry-wide international carbon tax.
• Ships exceeding emissions thresholds will face tiered penalties of $100 and $380 per ton of CO2, with implementation scheduled to begin in 2028.
• The agreement aims to cut shipping emissions by 20% by 2030 and achieve net-zero emissions by 2050, though critics argue the measures may only deliver an 8% reduction by 2030.
• The United States, under the Trump administration, withdrew from the negotiations, citing economic concerns, and threatened reciprocal measures against fees on U.S. ships.
• While the deal is expected to generate $10–40 billion annually to fund cleaner technologies, it has been criticized for insufficient support to vulnerable nations and modest climate ambition.