IMO Sinks World’s First Global Carbon Tax on Shipping
The United Nation’s specialized Agency, the International Maritime Organization (IMO) voted to postpone decisions regarding global carbon price on international shipping for a year. The decision came after delegates were not able to reach an agreement on the new rules to cut greenhouse gas emissions from ships. Large oil & gas producers like U.S and Saudi Arabia, have strongly opposed a carbon price on shipping, a blow to the EU and other nations like Brazil.
If adopted, the framework would be the first international legal agreement to curb maritime emissions. It introduces a global fuel standard that will progressively lower the annual greenhouse gas fuel intensity of marine fuels, and a greenhouse gas pricing mechanism requiring high-emitting ships to pay for their excess pollution. Ships exceeding thresholds would pay between $100 and $380 per ton of CO₂, generating billions in annual revenue, which would be channelled into the IMO’s Net Zero Fund to finance clean technologies, green fuel infrastructure, and climate adaptation in developing nations.