Shipping companies will have to pay for the carbon dioxide produced by their vessels starting from 2028, under new rules agreed upon by the International Maritime Organisation (IMO). The regulations fell short of what poor countries had hoped for, but aim to encourage ships to use low-CO2 fuels and operate more efficiently.
The charge on greenhouse gas emissions will increase after a certain threshold, allowing vessels to trade carbon credits with one another. This is intended to reduce waste and promote cleaner technologies. The measure is forecast to raise around $10 billion annually, less than the $60 billion that had been hoped for from a straightforward carbon levy.
However, experts warn that the emissions reductions likely to be achieved will be modest, at around 8% by 2030. This falls short of the 20% reduction required by the IMO’s climate strategy set out in 2023.
While some countries may opt for cleaner alternatives like liquified natural gas or biofuels, the rules are expected to tighten in the 2030s to penalise these options more heavily. Biofuels, however, could become a major boost with tens of millions of tonnes more demand anticipated in the first five years.
The decision was met with disappointment from many small island states, which had hoped for stronger measures. They vow to continue fighting for better climate policies.
Source: https://www.theguardian.com/environment/2025/apr/11/shipping-companies-pay-carbon-dioxide-produced-by-vessels