Countries at the United Nations shipping agency have reached a significant agreement on new fuel emissions standards for ships. This deal will impose fees on vessels that exceed set emissions limits and provide incentives for those using cleaner fuels.
The discussions took place at the International Maritime Organization (IMO) in London, where the United States withdrew from the negotiations. The U.S. urged other nations to do the same and warned of potential retaliatory measures against any fees imposed on American ships.
Despite the U.S. exit, a majority of countries approved new measures aimed at reducing carbon emissions from international shipping. The IMO has set ambitious targets: a 20 percent cut in emissions by 2030 and a complete elimination by 2050.
Starting in 2028, ships that emit more than a designated threshold will face a penalty of $380 per metric tonne of excess CO2-equivalent emissions. For emissions that exceed an even stricter limit, the penalty will increase to $100 per tonne. This scheme is expected to generate up to $40 billion in fees by 2030, with some funds allocated to make zero-emission fuels more accessible.
The talks highlighted deep divisions among nations regarding the pace of environmental reforms in the shipping sector. A stronger carbon levy proposal, supported by climate-sensitive Pacific nations, the European Union, and the UK, was abandoned due to opposition from several countries, including China, Brazil, and Saudi Arabia. Vanuatu’s climate minister expressed disappointment, stating that the agreement fell short of what was needed to align the shipping industry with climate goals.
The International Chamber of Shipping welcomed the agreement, emphasizing the necessity for increased investment in zero-emission fuels.
Under the new standards, by 2030, ships will be required to decrease their fuel emissions intensity by 8 percent compared to a 2008 baseline. The stricter standard will demand a 21 percent reduction. By 2035, the main standard will require a 30 percent cut, while the stricter one will aim for a 43 percent reduction. Ships that exceed the stricter limit will earn credits that they can sell to those that do not comply.
Mark Lutes from the World Wildlife Fund noted that this agreement marks a pivotal moment for the shipping industry. However, he cautioned that certain elements of the deal may hinder progress toward essential climate goals. The carbon pricing measure will need formal approval at an IMO assembly scheduled for October.