After a tumultuous series of talks over the last week, the International Maritime Organization passed a carbon levy of $100 for every ton of dioxide emitted by ships.
The IMO will collect the fee if member states, of which there are 176, have not contributed enough to the organization’s net zero fund and their ships are in non-compliance with the target, the Associated Press reported Friday.
Carbon Levy to Take Effect in 2028
The agreement will come into effect in 2028.
This follows a dramatic week at the meetings in London, with the U.S. threatening to derail the talks earlier this week in favor of bilateral negotiations with member states. Saudi Arabia also forced a last-minute vote, the BBC reported, further adding to the tension.
IMO Targets Net Zero Emissions by 2050
The IMO, a UN body, is targeting 2050 for the sector to achieve net zero emissions. The shipping industry worldwide accounts for approximately 3% of all global emissions, which was expected to grow substantially in coming years if the IMO did not establish carbon emissions regulations.
New Clean Fuel Standards for the Shipping Industry
The agreement also creates a standard for cleaner fuels to be used in the sector.
On Thursday, the IMO also approved a proposal for the creation of an emissions-control area in the northeast Atlantic Ocean, AP reported. Ships moving through this region will need to abide by stricter rules on fuels to minimize pollution.
