Countries at the United Nations shipping agency have reached a significant agreement aimed at reducing emissions in the maritime sector. This deal, struck on Friday, introduces a global fuel emissions standard that will penalize ships for exceeding set emissions limits while rewarding those that use cleaner fuels.
The agreement comes amid tensions, as the United States recently withdrew from climate discussions at the International Maritime Organization (IMO) in London. The U.S. has called on other nations to follow its lead and has threatened retaliatory measures against any fees imposed on American vessels.
Despite the U.S. stance, other nations moved forward with measures designed to help meet the IMO’s goal of cutting net emissions from international shipping by 20% by 2030 and achieving zero emissions by 2050. Under the new scheme, starting in 2028, ships that emit more CO2 than allowed will face a penalty of $380 for each additional metric ton of emissions. There will also be a stricter limit that incurs a penalty of $100 per ton for excess emissions.
The discussions highlighted divisions among countries regarding the pace of environmental reforms in shipping. A more aggressive proposal for a carbon levy on all shipping emissions, supported by vulnerable Pacific nations, the European Union, and the United Kingdom, was ultimately dropped due to opposition from countries like China, Brazil, and Saudi Arabia.
Vanuatu’s climate minister, Ralph Regenvanu, expressed disappointment, stating that the agreement fell short of the measures needed to align the shipping industry with the 1.5°C climate goal.
The deal is projected to generate up to $40 billion in fees by 2030, with some funds aimed at making zero-emission fuels more accessible. The International Chamber of Shipping welcomed the agreement, emphasizing the need for increased investment in these cleaner fuels.
By 2030, ships will need to reduce their emissions intensity by 8% compared to a 2008 baseline, with a stricter standard requiring a 21% reduction. By 2035, the main standard will aim for a 30% reduction in fuel emissions, while the stricter limit will target a 43% cut. Ships that achieve emissions below the stricter limit will earn credits that they can sell to those that do not comply.
Final approval for this measure is expected at the upcoming IMO meeting in October.