Countries have negotiated a significant yet modest agreement targeting emissions from cargo shipping, which contributes roughly 3% of global greenhouse gas emissions. A draft accord reached this past Friday in London under the framework of the International Maritime Organization (IMO), part of the UN, sets forth a requirement for all ships engaged in international trade to either reduce their emissions or pay associated fees starting in 2028, pending approval by member countries.
Global Shipping Pact: Emissions Tax Proposal Tackles Climate Change
Global Shipping Pact: Emissions Tax Proposal Tackles Climate Change
A new international agreement aims to impose a fee on ships to cut greenhouse gas emissions from the shipping industry.
Despite expectations for stronger measures, this pact represents a historical first as it would impose a direct price on climate pollution across the shipping industry, with revenues directed towards initiatives that promote cleaner fuel alternatives. Remarkably, the agreement came together despite the U.S. withdrawing from negotiations earlier in the week—a move that did not deter other nations from continuing discussions.
"This will be the first binding decision that will force shipping companies to decarbonize and switch to alternative fuels," asserted Faig Abbasov, shipping director for the environmental group Transport and Environment. The deal applies universally to all ships, irrespective of their nationality, including U.S.-flagged vessels. However, the potential response from the U.S. regarding the emissions fee remains uncertain.
"This will be the first binding decision that will force shipping companies to decarbonize and switch to alternative fuels," asserted Faig Abbasov, shipping director for the environmental group Transport and Environment. The deal applies universally to all ships, irrespective of their nationality, including U.S.-flagged vessels. However, the potential response from the U.S. regarding the emissions fee remains uncertain.
