Jennifer McDermott
The nation is about to reach a contract that charges commercial vessels the world’s first carbon tax and effectively a fee for emissions.
The International Maritime Organization, which regulates international shipping, has set targets for sectors reaching net zero greenhouse gas emissions by around 2050, and has committed to ensuring that fuels with zero or near-zero emissions will be used more widely. Its Marine Environmental Protection Commission will be held in London from Monday to Friday.
The committee, made up of IMO member states, is working to price maritime greenhouse gas emissions and approve the proposed new global regulations to reach the cleaner fuel phase.
This measure is more than a climate aspiration. They believe that when it becomes mandatory for globally operated vessels, IMO Secretary-General Arsenio Dominguez believes more must do to reduce carbon pollution. The committee will “set up a future course for net-zero in the maritime sector,” he told The Associated Press in a statement Thursday.
The future of clean transportation depends on balance, says Emma Fenton, director of climate diplomacy at Opportunity Green, a UK-based climate change nonprofit. Fenton said high prices and simple flat collection of maritime greenhouse gas emissions is the only way to decarbonise the industry fairly.
“If an agreement is reached, it represents a major moment of solidarity in the fight to tackle climate change,” Fenton said. “For the first time, there is an effective global framework to tackle this international issue. Most emissions are addressed domestically.”
What should you know about this:
What is the discussion?
Emissions from ships have increased over the past decade – according to the United Nations, up to about 3% of the global total.
Maritime countries agreed to cut emissions from the shipping industry in 2023, but they did not set 2050 as a tough date, so some experts and countries were critical of the deal. IMO is currently adopting regulations to meet the targets agreed in 2023.
Why are they important to the world?
Simple climatography combined with green fuel standards can help reduce the price gap for fossil fuels and green fuels such as hydrogen, methanol and ammonia, according to the Global Maritime Forum, a nonprofit that works closely with the industry. Shipping costs are heavily dependent on fossil fuels, and the sector will not move from people on its own, said Jesse Fannestock, who leads the forum’s decarbonization work. He added that investments need to be made now as it takes time to build an electronic fuel supply based on renewable electricity.
Today, most ships run on heavy fuel oil, and are released when carbon dioxide and other contaminants are burned. Dominguez says that major decarbonization requires overhauling the fuel.
The Clean Transportation Coalition is asking the government to commit high prices on all ship emissions and strong fuel standards. The alliance of environmental nonprofits is also urging countries to modify IMO tools to measure carbon strength of ships, to quantify and increase efficiency in a transparent manner, and to modify IMO tools to reduce the amount of long-term burning.
What is the status of the negotiation?
Over 60 countries led by Pacific Island countries whose very existence is threatened by climate change, will reach net zero in a fair way, supporting flat collection per large amounts of emissions. The shipping industry also supports fees. The international transport sector accounts for more than 80% of the world’s merchant fleet. Guy Platten’s executive director said the maritime emissions pricing mechanism is a practical solution and the most effective way to encourage rapid energy transitions during transportation.
Shipping containers lined up docked the most freighter docked at the Port of Oakland in Oakland, California on Thursday, April 3, 2025 (AP Photo/Noah Berger)
The vessel will depart from the port of Santos in Brazil on Tuesday, April 1, 2025.
Cranes and shipping containers will be found at the port of Pion Tak, Korea on Wednesday, April 2, 2025 (AP Photo/Ahn Young-joon)
The ship is loaded into Los Angeles Port in Los Angeles on Wednesday, April 2, 2025. (AP photo/Damiando Burgergen)
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Shipping containers lined up docked the most freighter docked at the Port of Oakland in Oakland, California on Thursday, April 3, 2025 (AP Photo/Noah Berger)
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Some countries, particularly China, Brazil, Saudi Arabia and South Africa, want a credit trading model instead of fixed collection. The ship earns credits to stay at its emissions target and purchases credits if the ship does. Other countries are seeking a compromise between the two models.
What’s lacking in universal collections is fearful of putting climate targets at stake and allowing wealthy ship owners to purchase compliance while continuing to contaminate. Ambassador Albon Ishihoda, a special mission to decarbonize the Marshall Islands, said the IMO climate target is “meaningless” without collection. Income from taxation can be used to help developing countries move towards greener shipping. So no dirty fuel or old ships are left behind.
What are you expecting by the end of the meeting?
If the committee agrees and finalizes texts for regulation, they could be officially adopted in October and come into effect in 2027. This could send a strong signal that green transitions are occurring and that global industry is possible, according to IMO.
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Original issue: April 7, 2025, 12:26pm EDT
