Overview

• The International Maritime Organization (IMO) has formalized a global CO2 emissions pricing system for the shipping industry, aiming to curb greenhouse gas emissions.
• Starting in 2028, all ships must adopt a lower-carbon fuel mix, with progressively stricter annual CO2 emission limits through 2035.
• Revenue from the emissions pricing system, estimated at $10 billion annually, will support climate action in developing countries and address climate-related impacts.
• A new emissions control zone, the largest globally, will be established in the North Atlantic by 2027, imposing strict limits on sulfur and nitrogen emissions.
• While environmental groups welcome the measures as a pivotal step, they criticize the promotion of agrarian-based biofuels and the lack of incentives for truly sustainable alternatives like e-fuels.