April 29, 2025
Countries at the U.N. shipping agency struck a deal on Friday, April 11 on a global fuel emissions standard for the maritime sector that will impose an emissions fee on ships that breach it and reward vessels burning cleaner fuels, according to a story from Reuters.
The U.S. pulled out of the climate talks at the International Maritime Organization in London during the meetings, urging other countries to do the same and threatening to impose “reciprocal measures” against any fees charged on U.S. ships.
Despite that, a majority of countries approved the CO2-cutting measures to help meet the IMO’s target to cut net emissions from international shipping by 20% by 2030 and eliminate them by 2050.
Under the scheme, from 2028 ships will be charged a penalty of $380 per metric ton on every extra ton of CO2 equivalent they emit above a fixed emissions threshold, plus a penalty of $100 a ton on emissions above a stricter emissions limit.
Countries still need to give final approval at an IMO meeting in October.
The talks exposed rifts between governments over how fast to push the maritime sector to cut its environmental impact.
A proposal for a stronger carbon levy on all shipping emissions, backed by climate-vulnerable Pacific countries – which abstained in Friday’s vote – plus the European Union and Britain, was dropped after opposition from several countries, including China, Brazil and Saudi Arabia, delegates told Reuters.
The deal is expected to generate up to $40 billion in fees from 2030, some of which will go towards making expensive zero-emission fuels more affordable.
In 2030, the main emissions limit will require ships to cut the emissions intensity of their fuel by 8% compared with a 2008 baseline, while the stricter standard will demand a 21% reduction.
By 2035, the main standard will cut fuel emissions by 30%, versus 43% for the stricter standard.
Ships that reduce emissions to below the stricter limit will be rewarded with credits that they can sell to non-compliant vessels.