IMO Global Carbon Tax on Shipping: 63 Nations Back It
Why in the news
Member states of the International Maritime Organization agreed in London to price carbon emissions from shipping, a first for any global industry.
Key facts
| Item | Detail |
|---|---|
| Start year | 2028 |
| Revenue estimate | Up to $40 billion by 2030 |
| Use of money | Ring-fenced for decarbonising maritime sector |
| Expected cut in emissions | Only about 10% by 2030 |
| IMO goal | At least 20% reduction by 2030 |
| Supporters | 63 nations incl. India, China, Brazil, small island states |
| Opponents | Saudi Arabia, UAE, Russia, Venezuela |
| US | Did not take part; absent at the vote |
Purpose
- Nudge shipping towards low-emission fuels and cleaner technology.
- Sets a precedent for taxing a hard-to-abate sector and builds momentum for climate-aligned shipping policy.
Concerns
- No contribution to wider climate finance, upsetting developing nations.
- More than 60 countries across the Pacific, Caribbean, Africa and Central America wanted part of the revenue to go to vulnerable economies.
- Tuvalu, speaking for Pacific islands, faulted weak transparency and weak incentives for clean fuels.
- Shows a widening split between industrialised and developing countries on climate finance.
About the IMO
- A UN specialised agency regulating maritime transport.
- Founded after a UN conference in Geneva in 1948; first met on 17 March 1958.
- Headquarters of the meeting: London.
Exam angle
- First global carbon pricing for a whole industry; effective from 2028.
- IMO: specialised UN agency for shipping.