The future of maritime decarbonization hangs in the balance as a proposed global carbon levy gains momentum—and sparks fierce debate. With over 60 countries now backing the initiative, the International Maritime Organization (IMO) is racing against time to finalize what could be the world’s first universal fee on international shipping emissions. But as supporters rally, opponents warn of economic fallout. Will this bold move steer the shipping industry toward a greener future, or will it sink under the weight of political resistance?
A Rising Tide of Support
Thirteen new countries have thrown their weight behind the carbon levy at the IMO’s recent climate talks in London, joining a coalition of 48 nations from the Caribbean, Pacific, Africa, Asia, and Europe. Dominica, Mexico, New Zealand, and Türkiye are among the latest to endorse the measure, which aims to price greenhouse gas emissions between $18 and $150 per tonne.
“This is a pivotal moment for maritime decarbonization,” said Blánaid Sheeran, Policy Officer at Opportunity Green. “Over 50 countries are now advocating for a levy that places a price on all of shipping’s emissions. But the real challenge lies in ensuring this mechanism prioritizes justice and equity.”
The proposed levy isn’t just about reducing emissions—it’s about funding the transition. The World Bank estimates that a $100/tonne levy could generate up to $60 billion annually, with a significant portion earmarked for developing and climate-vulnerable nations. These funds would support the adoption of zero-emission fuels and bolster global efforts to combat climate change.
The Biofuel Battle and the Road to Zero Emissions
While the carbon levy dominates discussions, another critical debate is unfolding over the role of biofuels in shipping’s energy mix. Ahead of the IMO talks, over 60 conservation NGOs, including Transport & Environment, issued a stark warning: biofuels are not the solution.
“Biofuels have devastating impacts on climate, communities, and ecosystems,” the organizations stated. “They cannot be part of the shipping industry’s path to decarbonization.”
Instead, the focus is shifting toward a Global Fuel Standard (GFS), which aims to phase out fossil fuels entirely by 2050. But key questions remain: What will the standard look like? How will it be enforced? And how will the industry bridge the gap between today’s reliance on fossil fuels and tomorrow’s zero-emission future?
Opposition and the Fear of Economic Fallout
Not everyone is on board with the carbon levy. Brazil, a key player in global trade and the future host of COP30, has joined forces with countries like China, Saudi Arabia, and South Africa to oppose the measure. In a letter to the IMO, these nations argued that the levy could harm developing economies, raise food prices, and exacerbate global inequalities.
“A universal carbon tax risks disproportionately affecting nations that rely on affordable shipping,” the letter stated. “Instead of levying costs upward, we should focus on flexible compliance mechanisms that incentivize low-emission solutions without crippling economies.”
Critics also point out that the levy’s impact on global GDP would be minimal, reducing it by just 0.03% to 0.07%. So, is the opposition truly about economic fairness—or is it a bid to protect export-driven industries from higher costs?
A Test of Global Cooperation
The IMO’s upcoming meetings in April and October will be a litmus test for international cooperation. As Ambassador Albon Ishoda of the Marshall Islands put it, “Without a universal levy, IMO’s climate targets are meaningless. Delays cost lives. The time for action is now.”
But with powerful nations like Brazil and China pushing back, the path to consensus is anything but smooth. As the clock ticks down, the question remains: Can the world unite to decarbonize one of its most polluting industries, or will political divides leave the shipping sector adrift in a sea of inaction?
