- The shipping industry is moving towards a global charge on greenhouse gas emissions.
- Uncertainties persist regarding its implementation and potential impact.
The shipping industry edges closer to a global, mandatory charge on greenhouse gas emissions as the International Maritime Organization (IMO) advances talks in London this week. The UN agency plans to finalise the measure by 2027.
Uncertainties persist regarding its practical implementation and potential impact. Secretary-General Arsenio Dominguez confirms a pricing mechanism but lacks specifics.
Various proposals, including a $150 per ton charge, have been submitted by nations like the Marshall Islands, the EU, Canada, and China. Challenges persist in revenue generation, allocation, and pricing structure.
Past attempts, like a $2 per ton levy in 2022, faced rejection. Political dynamics, including Donald Trump’s potential return, could influence decision-making. The IMO’s mechanism would be the world’s first mandatory price for greenhouse gas emissions.
According to Dominik Englert, this is the only sector that has progressed in such discussions. The levy complements the IMO’s strategy to decarbonise shipping, including regulations for reductions in ship fuel greenhouse gas intensity. Sandra Chiri underscores the role of nations in ensuring policy success.