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🗞️ Driving the news: As the International Maritime Organization (IMO) convenes in London this week, its member states remain deeply divided over whether to approve a global carbon tax on shipping emissions
• The proposed levy, championed by island nations and environmental advocates, aims to curb emissions from a sector responsible for nearly 3% of global greenhouse gases
• Yet opposition—led by countries like China and Brazil—warns the tax could hike consumer prices and intensify global inequalities.
🔭 The context: This debate marks a pivotal moment for maritime decarbonisation
• The IMO’s target is net-zero emissions from shipping by 2050, but reaching consensus on how to get there remains elusive
• The carbon tax is the boldest policy on the table, designed not just to deter emissions but to fund climate adaptation in vulnerable countries
• Geopolitical rifts, competing national interests, and economic fears—especially around food prices—have created choppy waters for negotiations.
🌍 Why it matters for the planet: Shipping may operate out of sight for many, but it's central to global trade—and climate goals
• A carbon levy could accelerate innovation in clean fuels and vessel efficiency, while also creating a funding stream for frontline climate resilience
• Without it, fragmented national approaches and the adoption of less effective measures, like carbon credits, risk derailing global emissions targets
• However, the effectiveness of such a levy hinges on global buy-in, fair implementation, and safeguards against harmful fuel alternatives like deforestation-linked biofuels
⏭️ What's next: By Friday, the IMO aims to agree on a framework to reach carbon neutrality by mid-century
• This could take the form of a binding carbon tax, a fuel standard, or a market-based mechanism such as carbon credits
• If consensus fails, momentum may shift to regional initiatives—like the EU's Emissions Trading System for shipping—potentially creating regulatory fragmentation
• Meanwhile, Pacific island states and civil society continue to push for climate justice, urging that any system must include financial support for the world’s most vulnerable.
💬 One quote: “Climate change is a terrifying lived reality for my country,” — Albon Ishoda, Marshall Islands representative to the IMO
📈 One stat: The shipping sector contributes nearly 3% of total global greenhouse gas emissions—more than most countries
See here detailed sustainability performance of companies like Maersk, and MSC Cruises
Click for more news covering the latest on carbon and sustainable maritime