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Majority of Shipping Nations Decide on USD 100 Penalty on Every 1 Ton Discharge of Carbon Dioxide by Ships

April 13, 2025

(3 Minutes Read)

The fee will be charged if nations have not contributed enough to the International Maritime Organization’s net-zero fund and their ships are not meeting their compliance target

Many of the world’s largest shipping nations decided to impose a minimum tax of USD 100 for every ton of carbon dioxide emitted by ships if their planet-heating emissions are not already accounted for, making it effectively the first global tax on greenhouse gas emissions.

The fee will be charged if nations have not contributed enough to the International Maritime Organization’s net zero fund and their ships are not meeting their compliance target. Members of the International Maritime Organization — with the United States noticeably absent — reached the agreement, which will become effective by 2028. The group also set a marine fuel standard to phase in cleaner fuels.

Emissions from shipping have increased over the last decade— to about 3% of the global total, according to the United Nations — as vessels have gotten bigger, delivering more cargo per trip and using immense amounts of fuel. IMO Secretary-General Arsenio Dominguez said at the closing that the group forged a meaningful consensus in the face of complex challenges to combat climate change and modernise shipping.

The delegates approved a proposal to designate an emissions control area in the Northeast Atlantic Ocean. Ships traveling through the area will have to abide by more stringent controls on fuels and their engines to reduce pollution.

The IMO, which regulates international shipping, has set a target for the sector to reach net-zero greenhouse gas emissions by about 2050 and has committed to promoting fuels with zero or near-zero emissions. Other countries with sizable maritime fleets — notably China, Brazil, Saudi Arabia, and South Africa — wanted a credit trading model instead of a fixed levy. A compromise between the two models was reached.

The United States didn’t participate in the negotiations in London, instead urging other governments to oppose the greenhouse gas emission measures under consideration.