Amid growing concerns over climate change, the International Maritime Organization is poised to introduce the world's first global carbon tax on shipping emissions. The AP reports that the International Maritime Organization plans to introduce the fee by 2028, in which nations would pay $100 per ton of carbon dioxide emitted by their vessels if the emissions aren't already accounted for.
IMO Secretary-General Arsenio Dominguez praised the consensus, as did Natacha Stamatiou of the Environmental Defense Fund nonprofit, who called the move "a crucial step to reduce climate impacts from shipping." Emma Fenton of the Opportunity Green nonprofit, however, isn't completely on board. "The IMO has made a historic decision, yet ultimately one that fails climate-vulnerable countries and falls short of both the ambition the climate crisis demands and that member states committed to just two years ago," she tells the AP. Fenton even says the plan may backfire, as some companies may just take the hit of the fee rather than invest even more money to "decarbonize," per the Hill.
Shipping accounts for about 3% of global emissions, per the UN. The IMO aims to reach net-zero emissions by 2050. The suggested tax is expected to bring in about $10 billion annually in revenue, which will be funneled into the IMO's net-zero fund to invest in fuels and technologies amenable to "green" shipping. The thresholds detailed in the agreement, which was crafted without input from the US, will become more rigid over time to help the IMO hit its 2050 goal.
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Who also isn't keen on the plan: the Trump administration, which earlier this week circulated a letter to various embassies for other nations to slam the concept as "blatantly unfair," per Politico. The letter notes that, if and when such a fee structure comes to pass, "our government will consider reciprocal measures so as to offset any fees charged to US ships." Anais Rios of the Seas at Risk NGO shrugs at the US' reticence. "Let's not get dazzled by the drama—this isn't the United States of Shipping," she says. "One country trying to play the disruptor doesn't change the fact that global cooperation is the real headline here." (This content was created with the help of AI. Read our AI policy.)
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