Maritime nations push forward with global carbon fee on shipping

The world’s maritime nations have preserved a plan to implement the first global carbon fee on shipping, following meetings this week at the International Maritime Organization (IMO) headquarters in London. The delegates concluded their session Friday with an agreement to continue working on the “Net-zero Framework” ahead of a potential vote in late fall.

While the framework remains the foundation for negotiations, the meeting also opened the door for alternative proposals and modifications. Meeting chairman Harry Conway of Liberia assured delegates that these alternatives could still be considered at upcoming meetings, and the work document was modified to explicitly allow for new submissions.

Some nations, including Australia, expressed concerns that continuing to discuss alternatives could delay progress at a time when climate change impacts are being felt globally and the shipping industry is seeking regulatory certainty to guide investments in green technologies.

IMO Secretary-General Arsenio Dominguez struck a cautiously optimistic tone as the meeting concluded, saying “we kind of are back on track,” while urging delegates to rebuild trust through continued dialogue.

Em Fenton of the climate nonprofit Opportunity Green noted that while the framework survived with majority support, “survival is not a victory and we cannot end up in a cycle of open-ended negotiations.” Fenton emphasized the need to maintain urgency and ambition while delivering equity for countries most vulnerable to climate impacts.

The proposed regulations would establish what effectively amounts to the first global tax on greenhouse gas emissions, imposing fees on ships that exceed allowable emission limits. The United States and Saudi Arabia are among the nations strongly opposing such a fee structure.

The Net-zero Framework, initially agreed upon last year, faced an unexpected roadblock in October when what was expected to be a formality vote was derailed by opposition from the U.S. — backed by trade threats from President Donald Trump — along with Saudi Arabia and other nations. Delegates postponed the decision by a year.

Shipping emissions currently account for approximately 3% of global greenhouse gas emissions and have been growing over the past decade as global trade expands. Most ships today run on heavy fuel oil, though there is increasing interest in alternative fuels like ammonia, which doesn’t contain carbon.

The framework would establish a marine fuel standard that progressively reduces allowable greenhouse gas emissions over time. Revenue collected through the pricing mechanism would fund an IMO investment initiative to support the transition to green shipping technologies, reward low-emission vessels, and ensure developing nations aren’t left behind with outdated, polluting equipment.

Mark Brownstein, senior vice president for energy transition at Environmental Defense Fund, believes the framework will put the global shipping industry on more sustainable environmental and economic footing, particularly important given rising oil prices amid the ongoing conflict with Iran.

The IMO has set an ambitious target for the shipping sector to achieve net-zero greenhouse gas emissions by approximately 2050. With large ships typically having a 25-year operational lifespan, industry experts stress the importance of making investment decisions now to meet these future targets. The International Chamber of Shipping, representing over 80% of the world’s merchant fleet, has advocated for adoption of the regulations to provide the certainty needed for these long-term investments.

Meetings will continue this fall as maritime nations work toward a potential vote on the framework and its implementation.