The International Maritime Organization (IMO) will convene this week to decide on the adoption of a global carbon emissions pricing mechanism for the shipping industry, a proposal backed by an EU-led coalition including the United Kingdom, China and Japan, but strongly opposed by the United States. The measure, scheduled for discussion at the IMO’s Marine Environment Protection Committee meeting from October 14 to 17, follows a preliminary deal reached in April. The U.S. withdrew from those talks and has since warned of “reciprocal measures” if the plan moves forward.
Washington has continued lobbying against the proposal, threatening to impose port fees and visa restrictions on countries supporting what it called a “European-led neocolonial export of global climate regulations,” according to a U.S. State Department statement issued on October 11. In contrast, the European Union has urged IMO members to adopt the measure, the European Commission said on October 12.
Under the draft rules, ships larger than 5,000 tons that exceed a set emissions threshold would be required to buy remedial units or pay a penalty, while vessels emitting below a secondary threshold would receive surplus units as an incentive for using cleaner fuels. Revenues would be collected in a new IMO Net-Zero Fund managed by the IMO Secretariat, although how the funds will be distributed remains undecided.
University College London research estimates the measure could generate $11 billion to $12 billion annually between 2028 and 2030, with most ships expected to pay penalties in the early years of implementation.
