In a groundbreaking move to combat climate change, over 60 of the world’s largest shipping nations have agreed to impose the first-ever global fee on greenhouse gas emissions from ships. The new plan will charge a minimum of $100 per ton of emissions above specific thresholds, signaling a significant global commitment to clean up one of the most polluting industries.
Billions for a Greener Future
The International Maritime Organization (IMO) estimates this measure will generate $11 to $13 billion annually, which will be funneled into a dedicated net-zero fund. The fund will help:
- Support the adoption of cleaner fuels
- Reward low-emission ships
- Assist developing nations in upgrading their fleets and infrastructure
The fee is expected to come into effect in 2027, pending formal adoption in October. Over time, the emission thresholds will become more stringent, aligning with IMO’s goal to make shipping net zero by 2050.
US Missing from the Table
Notably, the United States did not participate in the negotiations. The U.S. cited concerns over potential economic burdens on its shipping sector and warned against any fees that could raise inflation. IMO Secretary-General Arsenio Dominguez responded by stating that international ships must follow IMO rules, regardless of individual national policies.
A Step Forward, but Not Without Critics
Environmental groups offered mixed reactions. While many hailed the deal as a “historic decision,” others, like Opportunity Green, criticized it for not going far enough.
“It risks becoming a pay-to-pollute model,” said Emma Fenton, arguing the fee might not be strong enough to force real emissions cuts.
Others, including the Environmental Defense Fund, praised the move as an essential first step that lays the groundwork for a cleaner shipping industry.
Emissions Control Area Added
Delegates also approved a new emissions control zone in the North-East Atlantic Ocean, covering countries like the UK, France, Greenland, and the Faroe Islands. Ships in the area will need to comply with stricter fuel and engine standards to limit pollution.
A Hard-Won Global Compromise
The fee agreement represents a compromise between two camps:
- Over 60 countries, led by Pacific Island nations, demanded a straightforward emissions tax.
- Others, including China, Brazil, Saudi Arabia, and South Africa, favored a credit trading system.
In the end, 63 countries voted in favor, 16 opposed, and 24 abstained—showing how challenging climate diplomacy can be.
What’s Next?
With this fee structure in place, the shipping sector takes a big step toward climate accountability. However, as Secretary-General Dominguez noted, the journey has just begun. The IMO will continue refining standards, particularly around the use of transitional fuels like liquefied natural gas (LNG).
This deal marks a critical shift: the world is no longer letting shipping sail under the radar when it comes to climate action.
