Global Shipping Faces Emissions Pricing: A Climate Tug-of-War

The International Maritime Organization (IMO) is considering implementing a carbon emissions fee on global shipping amid EU support and U.S. opposition. The proposal, aimed at reducing marine pollution, includes fees for ships exceeding emissions thresholds. If passed, it could generate significant funds for climate efforts.

The International Maritime Organization is set to convene this week to determine whether to introduce a carbon emissions fee on global shipping. This proposal, supported by an EU-led coalition including Britain, China, and Japan, faces staunch opposition from the United States.

In April, the IMO reached a preliminary agreement to charge the global shipping industry for emissions when the U.S. exited discussions. This prompted threats of "reciprocal measures" from Washington against fees imposed on its ships. The environmental committee of the IMO will deliberate on the proposal from October 14-17, including U.S. participation.

The U.S. has actively sought to thwart the measure, threatening port fees and visa restrictions on supporting nations. In contrast, EU member states are advocating the IMO measure's adoption. The proposed marine fuel emissions standard would charge ships larger than 5,000 tons for excess emissions while rewarding cleaner vessels, with revenues earmarked for an IMO Net-Zero Fund.

(With inputs from agencies.)