Major nations have agreed to impose a minimum fee of $100 per ton of greenhouse gases emitted by ships above certain thresholds, marking the first global tax on greenhouse gas emissions. The International Maritime Organization (IMO) estimates that the fees will generate $11 billion to $13 billion in revenue annually, which will be used to invest in cleaner fuels and technologies needed for green shipping.
The agreement, reached without the United States’ participation, aims to reduce climate impacts from shipping by implementing a global fuel standard and greenhouse gas pricing mechanism. The IMO’s goal is to achieve net zero emissions across the industry by 2050. However, some environmentalists argue that the fee does not go far enough in driving emission reductions and may even create incentives for ships to pollute rather than decarbonize.
The agreement includes a marine fuel standard to phase in cleaner fuels and designates an emissions control area in the North-East Atlantic Ocean, which will impose stricter controls on fuels and engines. The IMO Secretary-General noted that the industry is on track to meet its net zero goal, while some critics see the agreement as a step in the right direction but not sufficient to address climate change.
The compromise reached during negotiations aimed to balance the interests of countries with large maritime fleets, such as China and Brazil, who preferred a credit trading model, and those that pushed for a simple tax charged per metric ton of emissions. The outcome is expected to be formally adopted at an October meeting to take effect in 2027.
Source: https://apnews.com/article/shipping-emissions-climate-change-98ff23ca4739d8b4fc5a8f941a7ca0c4