In April 2025, the International Maritime Organization’s (IMO) Marine Environment Protection Committee (MEPC) achieved a historic milestone by voting 63–16 in favor of implementing an emissions fuel standard that includes a built-in carbon price. If formally adopted in October, this would mark the first binding global carbon pricing mechanism applied to any industry—a significant step forward in the maritime sector’s journey toward decarbonization.
This development is the culmination of over two decades of negotiations and policy groundwork within the IMO. The proposed framework is intricate, reflecting the complexity of global shipping operations and the diverse interests of member states. To unpack the implications of this agreement, Lloyd’s List’s senior reporter Declan Bush hosted a podcast featuring insights from three experts:
- Marie Fricaudet, Senior Research Fellow at the UCL Energy Institute
- Aoife O’Leary, CEO of Opportunity Green
- Rico Luman, Senior Economist at ING
The MEPC Post-Mortem: A Landmark Moment for Shipping Decarbonisation
The discussion highlighted the transformative potential of the agreement, while also acknowledging the challenges ahead. The experts emphasized the need for clear implementation strategies and the importance of providing certainty to investors and stakeholders in the shipping industry. They also discussed the broader implications for global trade and the potential ripple effects across related sectors.
This pivotal moment signifies not just a policy shift but a paradigm change in how the maritime industry approaches environmental responsibility. The integration of a carbon pricing mechanism sets a precedent that could influence other industries and regulatory bodies worldwide.
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Source: Lloyd’s List
