With less than two months left before a historic climate deal, governments are moving closer to pricing emissions in one of the world’s most polluting sectors—international shipping.
In 2023, the International Maritime Organization (IMO) set a landmark goal to achieve net-zero emissions in shipping by 2050. Now, discussions are intensifying around a global carbon levy to make this vision a reality. The IMO will hold interim meetings from February 17-21, aiming to finalize the policy by April for implementation in 2027.
Growing Support for a Carbon Levy
Momentum for a carbon levy is surging, with 49 countries across the Pacific, Africa, Europe, the Caribbean, and Asia backing the initiative. Major shipping nations such as Panama, Liberia, Greece, and Japan have also expressed support.
A proposed levy of $100-$150 per tonne of CO2e could generate up to $90 billion annually, according to estimates. This revenue would help fund the clean energy transition in shipping while supporting climate-vulnerable nations.
A Game-Changer for Climate Finance
Unlike past climate negotiations, the IMO has the opportunity to implement a binding global measure that directly funds emissions reduction and climate resilience. Revenue from the levy could support renewable energy projects in developing nations, particularly in Africa and Latin America, where vast clean energy potential remains untapped.
Economists argue that decarbonizing shipping will come at a cost, but a structured levy could minimize financial burdens while accelerating the transition. Delaying action, on the other hand, could result in a $38 trillion climate crisis by 2049—an unsustainable burden for the Global South.
As the IMO prepares for its critical April decision, the world watches closely. Will this be the moment global shipping finally aligns with climate action?
Source: CLIMATE HOME NEWS
