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IMO Negotiates Historic Shipping Carbon Tax and Fuel Standards

Talks in London aim to finalize first binding global measures to decarbonize shipping by 2050, with key debates over emissions pricing models and equity.

A container ship approaches the port of Santos in Brazil, Tuesday, April 1, 2025. (AP Photo/Andre Penner)
Ships are loaded at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)
Shipping containers line the Ever Most cargo vessel docked at the Port of Oakland on Thursday, April 3, 2025, in Oakland, Calif. (AP Photo/Noah Berger)
Cranes and shipping containers are seen at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Overview

  • The International Maritime Organization (IMO) is working to finalize regulations for a global carbon tax on shipping emissions and cleaner fuel standards to achieve net-zero emissions by 2050.
  • Pacific island nations and over 60 countries advocate for a flat emissions levy, while nations like China, Brazil, and Saudi Arabia push for a credit trading model, reflecting economic and equity concerns.
  • Revenue from the proposed levy could support developing nations in transitioning to greener shipping technologies, addressing disparities in resources and capabilities.
  • Critics argue that compromising on a universal levy could undermine climate goals and allow wealthier shipowners to buy compliance while continuing to pollute.
  • Formal adoption of the finalized measures is expected in October 2025, with implementation planned for 2027, marking a pivotal moment for global shipping decarbonization.