IMO Debates Intensify Over Shipping Emissions Levy

Efforts to establish a global levy on shipping's greenhouse gas emissions face critical hurdles as IMO nations negotiate practical solutions ahead of key meetings.

The International Maritime Organisation's (IMO) latest discussions on reducing shipping emissions were concluded with mixed outcomes as member nations debated a global levy to tackle greenhouse gas emissions. 

The meeting - known as ISWG-GHG 18, held from 17th to 21st February 2025 - showed promising agreements and significant divides among participating states.

With approximately three-quarters of IMO nations, including the European Commission and the International Chamber of Shipping (ICS), backing the proposed system, momentum appeared to favour a unified commitment. 

This coalition of governments and shipping interests advocated a contribution-based approach, wherein annual fees aligned with each vessel's emissions would be channelled into the IMO GHG Strategy Implementation Fund. 

This fund, projected to generate billions in revenue annually, would incentivise innovative practices and the use of zero- and near-zero (ZNZ) emission fuels such as green methanol and biomethane.

However, consensus remained elusive, as nations including China and Brazil expressed hesitation about the proposed measures.

A key issue was disagreement over a GHG intensity fuel standard, a measure aimed at further regulating emissions. In response to this impasse, the ICS introduced an alternative approach involving surcharge fees for ships unable to meet standards due to limited access to compliant fuels. This more straightforward proposal remains under review as discussions evolve.

Secretary general of the ICS, Guy Platten, highlighted the urgency of achieving progress, particularly with the critical IMO Marine Environment Protection Committee (MEPC 83) scheduled for April. 

“While ICS is broadly satisfied with the progress made on a radical new package of global GHG reduction regulations, including a GHG emissions pricing mechanism, much work urgently remains to be done. But despite divergence on many issues, it is encouraging that negotiations continue in a positive and cooperative spirit,” Platten commented.

He further stressed the need for practical solutions to resolve key differences, particularly in incentivising the use of ZNZ fuels. 

“To ensure progress, ICS will continue to put forward pragmatic and constructive proposals to bridge differences, particularly on the crucial issue of economic incentives for the use of ZNZ fuels,” Platen added.

“Achieving consensus is crucial for delivering the goals of the revised GHG Reduction Strategy, which were unanimously agreed by all governments in 2023”.

The upcoming Marine Environment Protection Committee (MEPC 83), set for April, now looms as the critical forum for turning debate into action. Stakeholders across the maritime industry will be closely observing these discussions, as the IMO works to deliver a cohesive and impactful emissions strategy that propels global shipping toward a greener future.

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