Leading maritime nations are meeting in London this week to consider adopting global regulations aimed at reducing greenhouse gas emissions from the shipping industry and accelerating its shift away from fossil fuels.
If approved, the plan would introduce the world’s first global levy on carbon emissions from ships. The International Maritime Organization (IMO) meeting, which continues through Friday, faces political challenges as the Trump administration has rejected the proposal and warned of possible retaliation.
IMO member states had agreed in April on the framework of the Net-zero Regulations, which seek formal adoption this week. The rules propose a fuel standard that gradually reduces allowable emissions and introduce a carbon pricing system. Ships exceeding emission limits would pay US$380 per ton of carbon dioxide equivalent to meet baseline compliance and an additional US$100 per ton for stricter compliance.
Vessels performing better than required would earn credits, while the fees collected—estimated at US$11–13 billion annually—would support green fuel research, low-emission technologies and assist developing countries.
Shipping accounts for nearly 3% of global greenhouse gas emissions. The IMO aims for the sector to reach net-zero emissions by 2050, with the new rules expected to take effect in 2027 and penalties starting in 2028 for large ocean-going ships.
Environmental groups have welcomed the move but cautioned against excessive reliance on biofuels derived from food crops, urging investment in scalable alternatives such as green ammonia and methanol.
Despite opposition from the United States, Russia and Saudi Arabia, observers said most countries are expected to support the deal. Failure to adopt it could delay efforts to decarbonize the shipping sector and prolong its contribution to global warming.
