Global shipping carbon fee plan advances but faces delays

LONDON — Nations agreed to keep alive a plan to introduce the world’s first global carbon fee on shipping emissions, but postponed a final decision as divisions over the proposal persist.

Framework preserved, but no final agreement

The proposed “Net-zero Framework” would introduce a pricing system that charges ships for greenhouse gas emissions exceeding set limits — effectively creating a global carbon fee for the maritime sector.

While the framework remains the basis for negotiations, countries agreed to keep alternative proposals on the table, leaving room for significant changes.

IMO Secretary-General Arsenio Dominguez said discussions were “back on track,” but emphasized the need for continued cooperation among member states.

Divisions slow progress

The delay highlights ongoing disagreements between nations over how aggressively to regulate shipping emissions.

Some countries, including the United States and Saudi Arabia, have expressed strong opposition to a global emissions fee.

Others, such as Australia and several European nations, warned that reopening negotiations could undermine urgency as climate impacts intensify and the shipping industry seeks regulatory certainty.

Shipping’s growing climate impact

Global shipping accounts for roughly 3% of total greenhouse gas emissions — a figure that has risen steadily alongside global trade.

Most vessels rely on heavy fuel oil, one of the most carbon-intensive energy sources.

The proposed framework aims to:

• Gradually reduce emissions from shipping fuels
• Incentivize cleaner technologies and alternative fuels
• Support developing countries in the transition

Ammonia and other low- or zero-carbon fuels are being explored as potential replacements.

Economic and industry implications

The carbon fee would generate funds to:

• Invest in green shipping technologies
• Reward low-emission vessels
• Assist developing nations in modernizing fleets

Industry groups, including the International Chamber of Shipping, have pushed for clear global rules to guide long-term investments.

Experts say early action is critical, given that large ships typically remain in service for decades.

Geopolitics and timing

The push for cleaner shipping comes amid broader global uncertainty, including rising energy costs linked to geopolitical tensions such as the Iran conflict.

Higher oil prices are increasing pressure on the sector while also complicating the transition to alternative fuels.

What comes next

Negotiations will resume in the fall, with the possibility of a vote on the framework later this year.

The outcome will determine whether the shipping industry becomes the first sector subject to a coordinated global carbon pricing system.

A landmark plan to impose a global carbon fee on shipping emissions remains alive, but delays and political divisions could reshape its final form as countries negotiate the path toward greener maritime trade.