The world’s largest maritime nations are convening in London this week to consider groundbreaking regulations aimed at reducing greenhouse gas emissions from shipping, potentially marking the first global carbon fee for the industry.
The International Maritime Organization (IMO) meeting, taking place through Friday, will focus on a “Net-Zero Framework” that sets strict marine fuel standards and a pricing system for emissions. Under the proposal, ships emitting above allowed limits would pay fees, while those achieving lower emissions could earn credits. The fees, set at USD 380 per ton of CO₂ for base compliance and USD 100 per ton for exceeding the direct compliance target, could generate USD 11–13 billion annually to fund green shipping technologies, reward low-emission vessels, and support developing countries.
“Shipping has long relied on crude, dirty fuels. This agreement shows the world that legally binding climate action is possible,” said Delaine McCullough, shipping program director at the Ocean Conservancy.
Shipping emissions have grown to account for roughly 3% of global greenhouse gases over the last decade. The IMO aims for the sector to reach net-zero emissions by 2050, requiring ships to adopt alternative fuels, electrification, onboard carbon capture, and energy efficiency technologies.
Large oceangoing ships over 5,000 gross tonnage, responsible for 85% of shipping emissions, would begin paying penalties under the plan starting in 2028, with the regulations entering into force in 2027. The International Chamber of Shipping, representing over 80% of the global merchant fleet, is backing the initiative.
However, environmental groups caution against overreliance on biofuels derived from food crops, warning that such fuels could drive deforestation and disrupt food production. “The deal as it stands won’t deliver net-zero emissions by 2050,” said Faig Abbasov, shipping director at Brussels-based Transport and Environment. Green ammonia and methanol are seen as key long-term solutions but may not become economically viable until the late 2040s.
The U.S. administration has expressed strong opposition to the proposal, threatening retaliatory measures if adopted, setting the stage for a tense vote at the London meeting. While the IMO prefers consensus, experts believe a majority of nations will support adoption. “Failure this week will delay decarbonisation and prolong shipping’s outsized contribution to the climate crisis,” said John Maggs of the Clean Shipping Coalition.
The outcome of the London meeting could mark a historic step in international climate action and reshape the future of global shipping.