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illuminem summarises for you the essential news of the day. Read the full piece on The Associated Press or enjoy below:
🗞️ Driving the news: Global maritime nations are convening at the International Maritime Organization (IMO) headquarters in London to decide on a landmark climate regulation for the shipping sector
• The proposed “Net-zero Framework” would impose the first-ever global fee on greenhouse gas emissions from ships and establish declining emissions limits for marine fuels
• If adopted, the regulation would enter into force in 2027, with penalties for high-emitting vessels starting in 2028
🔭 The context: Shipping accounts for nearly 3% of global greenhouse gas emissions, largely due to the use of heavy fuel oil
• In April 2025, IMO member states agreed on the framework’s contents, aiming to align the sector with the 2050 net-zero emissions goal
• The proposal includes both emissions intensity targets and a pricing mechanism
• However, the initiative faces political pushback, notably from the U.S., where the Trump administration has threatened retaliation if the measure proceeds
🌍 Why it matters for the planet: The shipping sector is one of the last major industries without binding climate measures
• A global carbon fee could generate up to $13 billion annually to accelerate clean fuel development and support developing countries
• However, concerns remain over the reliance on food-based biofuels, which can drive deforestation and food insecurity
• The regulation’s effectiveness will depend on how well it steers investment toward truly scalable, low-emission alternatives like green ammonia and methanol
⏭️ What's next: The IMO seeks consensus but may resort to a formal vote before the meeting concludes Friday
• If passed, the regulation would apply to ships over 5,000 gross tonnage — responsible for 85% of the sector's emissions — and would be a milestone in international climate governance
• Delays or rejection would prolong the industry's high-carbon trajectory, with long-term implications for global climate targets and technological investment timelines
💬 One quote: “This agreement provides a lesson for the world that legally-binding climate action is possible,” — Delaine McCullough, shipping program director at Ocean Conservancy
📈 One stat: The proposed emissions pricing system could raise $11–13 billion per year to fund green shipping technologies and support equitable transition pathways
See on illuminem's Data Hub™ the sustainability performance of logistics & shipping companies like Maersk, MSCI, and Hapag-Lloyds
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