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47 governments, shipping industry propose text for IMO carbon tax

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By illuminem briefings

· 2 min read


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🗞️ Driving the news: The International Chamber of Shipping (ICS) and 47 governments have proposed a carbon pricing mechanism for international shipping at the International Maritime Organization (IMO)
The mechanism includes a mandatory greenhouse gas (GHG) charge per tonne of CO2e emitted, aimed at funding the transition to zero or near-zero GHG fuels

🔭 The context: Major maritime nations, EU states, and small island developing nations have coalesced behind the proposal
The revenue would support developing countries and incentivize green fuel production
This builds on the EU’s carbon levy mechanism, which began covering large ships in 2024 under its Emissions Trading System

🌍 Why it matters for the planet: Shipping accounts for 3% of global GHG emissions, and decarbonizing this sector is critical to achieving net-zero goals
A global carbon tax could significantly reduce reliance on conventional marine fuels and accelerate the adoption of green alternatives like ammonia, methanol, and hydrogen

⏭️ What's next: The IMO will deliberate on this proposal in February 2025, with potential amendments to the MARPOL Convention approved by April 2025
If adopted, the GHG contributions could start globally in 2028

💬 One quote: “The industry fully supports the adoption by IMO of a GHG pricing mechanism… the most effective way to incentivize a rapid energy transition in shipping,” – Guy Platten, ICS Secretary General

📈 One stat: The GHG contribution per tonne of CO2e emitted could range from $60 to $300, depending on reward rates for green fuels and support levels for developing nations

Click for more news covering the latest on carbon and sustainable maritime

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