The United Nations’ International Maritime Organization (IMO) has approved the world’s first global carbon pricing system for shipping in an effort to reduce greenhouse gas emissions. After a week of negotiations in London, the IMO announced on Friday that the pricing scheme would take effect in 2028. The system will require ships to adopt cleaner, less carbon-intensive fuel mixes or face financial penalties. The aim is to help the maritime sector reach carbon neutrality by 2050.

Shipping companies that exceed agreed emissions thresholds will be required to pay annually for each tonne of greenhouse gases emitted beyond the target. The revenue will be directed toward supporting zero or near-zero emissions technologies and assisting developing nations with green shipping transitions.

According to IMO estimates, shipping is responsible for around 3% of worldwide greenhouse gas emissions.

Divided Support Among Member States

India, China, Brazil, the European Union, and Japan were among the 63 nations that supported the plan. However, 16 countries, including oil-rich nations like Russia, Saudi Arabia, and the United Arab Emirates, opposed the action.

The vote was missing participation by the United States. Pacific Island countries, on the other hand, abstained, claiming the legislation lacked the tenacity required to solve the global climate emergency. These tiny island nations, which are some of the most climate-vulnerable in the Caribbean and Pacific, had been advocating for a more robust and all-encompassing carbon tax on shipping.

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Environmental Groups Hail Progress, Urge Stronger Action

The accord was hailed as a major step forward by environmental organizations and certain governments. The World Wide Fund for Nature (WWF) senior advisor Mark Lutes called the decision a “groundbreaking moment” for maritime emissions policy.

Although he warned that “key aspects of this agreement fall short of what is needed and risk blowing the transition off course,” he noted that the accord “should signal a turning of the tide on greenhouse gases from global shipping.”

The world’s first global carbon pricing system for shipping will still require formal adoption at the IMO’s next meeting in October.

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