The International Maritime Organization (IMO) has finalized a framework to introduce a global carbon pricing mechanism for shipping emissions—marking the first time such emissions will be subject to charges.
While this move is being hailed as a historic milestone for climate governance at sea, it has fallen significantly short of the expectations of Pacific Island nations and climate experts. The scheme, likely to be ratified by October 2025 and implemented by 2027, could raise around US$10 billion annually, a fraction of what some stakeholders had proposed.
Global Agreement with Modest Ambitions
Under the new IMO framework, ships emitting greenhouse gases will be charged around $15 per ton of CO₂, far below the $100–150 per ton experts recommend for meaningful impact. Larger vessels over 5,000 gross tons will be included in the first phase, with smaller ships expected to be added later. While this price point signals the first global carbon charge for shipping, critics argue it lacks the financial pressure needed to force major decarbonization in the sector.
Pacific Nations’ Ambitious Vision Rejected
Small Island Developing States (SIDS), particularly from the Pacific and Caribbean, had pushed for a much stronger emissions levy. Their proposal included a $150 per ton universal carbon charge, mandatory emissions reductions, and penalties for non-compliance—tools they argued were necessary to drive full decarbonization by 2040.
This more aggressive vision was sidelined in the final negotiations, leaving many climate advocates frustrated by the influence of geopolitics and opposition from large emitters like China, Saudi Arabia, and Brazil.
A Foundation for Future Expansion and Support
Despite its limitations, the framework is a critical foundation for global shipping emissions governance. By covering emissions from international waters—previously unregulated—the IMO scheme fills a key gap in global climate policy. Experts like Dr Tristan Smith highlight its potential to support low- and middle-income countries in transitioning to low-carbon shipping.
Revenues from the scheme could subsidize clean fuel investments and support developing nations’ maritime modernization, though that depends on how funds are allocated and scaled in future versions of the framework.
The IMO’s new global shipping emissions framework represents a landmark achievement in establishing the first-ever international carbon pricing mechanism for maritime transport. While the agreement is a step in the right direction, it falls short of the bold measures urged by climate-vulnerable nations and scientists who see urgent need for stronger action.
The relatively low carbon price and delayed implementation timeline have tempered expectations, but the framework still lays the groundwork for future enhancements. Its success will ultimately depend on the IMO’s willingness to increase ambition, ensure equitable distribution of revenues, and support developing countries in their transition to a low-carbon maritime sector.
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Source: RNZ
