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illuminem summarises for you the essential news of the day. Read the full piece on the Washington Post or enjoy below:
🗞️ Driving the news: Member states of the International Maritime Organization (IMO) have agreed to a landmark global carbon tax on shipping, making maritime transport the first sector to face binding international emissions targets
• The draft agreement, which the Trump administration opposes, aims for net-zero emissions in shipping by 2050 and is expected to take effect in 2027
🔭 The context: Shipping accounts for around 3% of global greenhouse gas emissions—roughly equivalent to the emissions of the sixth-largest country
• Efforts to regulate the sector’s climate impact have long lagged behind, partly due to its international nature
• The proposed carbon tax follows years of negotiations and is part of the IMO’s broader climate strategy
• It introduces emissions intensity targets and requires lagging shipowners to offset emissions or contribute to a dedicated net-zero fund
🌍 Why it matters for the planet: This agreement sets a precedent for global, enforceable emissions regulation in a hard-to-abate sector
• It incentivizes technological innovation and operational efficiency in one of the world’s most emissions-intensive industries
• However, the deal’s ambition is contested—while oil-producing nations criticize its feasibility, island states and environmental advocates argue it still falls short of what's needed to align with climate science.
⏭️ What's next: The draft agreement is scheduled for formal adoption in October 2025
• If enacted, it will come into force by 2027, with proceeds from the carbon tax used to support green shipping innovation and climate-vulnerable states
• The U.S. has signaled possible retaliatory measures against fees imposed on its fleet, suggesting potential geopolitical friction
The IMO may also face pressure to tighten targets if mid-decade assessments show slow progress toward decarbonization
💬 One quote: “This represents another significant step in our collective efforts to combat climate change, to modernize shipping and demonstrates that IMO delivers on its commitments,” – Arsenio Dominguez, Secretary General, IMO
📈 One stat: If the maritime industry were a country, it would rank sixth globally in greenhouse gas emissions, according to the U.S. Energy Department.
See here detailed sustainability performance of companies like Maersk
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