A coalition of 47 International Maritime Organization (IMO) member states and the International Chamber of Shipping (ICS) has jointly submitted a groundbreaking proposal to implement a global greenhouse gas (GHG) emissions levy for the shipping industry.
The proposed text, submitted to the IMO’s Working Group on Reduction of GHG Emissions from Ships (ISW-GHG), outlines a system in which ships would pay an annual levy per tonne of CO2-equivalent emissions. Funds collected from this levy would be allocated to accelerate the development and adoption of zero-carbon fuels within the maritime sector.
Draft wording for amendments to MARPOL Annex VI is included in the submission, which will be reviewed during the 18th meeting of ISWG-GHG in February 2025. This discussion is seen as a precursor to the critical Marine Environment Protection Committee (MEPC 83) meeting in April 2025. To align with IMO’s Revised GHG Strategy, the mid-term measure must secure approval at MEPC 83 to enable adoption at an extraordinary MEPC meeting later this year, ensuring its entry into force by 2027.
The proposed levy is designed to narrow the cost gap between expensive low-carbon fuels and the cheaper, more polluting fossil fuels currently prevalent in the shipping industry. The text includes three suggested levy rates—$18.75, $100, and $150 per tonne of well-to-wake CO2-equivalent emissions—intended to provide flexibility for policymakers.
Prominent supporters of the proposal include major shipping nations such as Greece, Japan, and South Korea, along with key flag states including the Bahamas, Liberia, Marshall Islands, and Panama. The European Union and its member states have also expressed their backing for the initiative.
“The industry fully supports the adoption by IMO of a GHG pricing mechanism for global application to shipping,” said ICS Secretary General Guy Platten. “The joint text put forward by this broad coalition is a pragmatic solution and the most effective way to incentivize a rapid energy transition in shipping to achieve the agreed IMO goal of net zero emissions by or close to 2050. We are very pleased that such a large and diverse group of nations now firmly supports a common approach to maritime carbon charging.”
Platten emphasised that the proposed text represents a culmination of years of advocacy by the ICS, which has long championed a universal GHG pricing mechanism. However, he acknowledged that some governments remain hesitant.
“While a large number of governments now support a universal flat rate GHG contribution by ships—or something similar—a minority of governments continue to have concerns. Working in cooperation with all IMO Member States, we will do our best to allay such concerns during the final stages of these critical negotiations about regulatory text,” he added.
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