UN talks on a global carbon price on shipping enter final stage

Governments are expected to close in on key shipping climate laws–including a global carbon price–at the 18th intersessional meeting at the UN’s International Maritime Organization (IMO), on 17-21 February in London.

Over 50 countries from Europe, Africa, Asia, the Pacific and the Caribbean support this mechanism at the IMO, representing a majority of the world’s fleet. 48 countries, the European Commission, and the industry (through the International Chamber of Shipping) specified that the future levy price should be within the price range of $18-150 per tonne of greenhouse gas, ahead of the February meeting.

A carbon levy is in advanced negotiations by governments at the IMO, which agreed under the 2023 Revised Strategy that shipping needs a ‘GHG emission pricing mechanism’ and to finalise it in April 2025. The February talks (ISWG-GHG-18) hope to get clarity on the design of the future policy, including the price, scope revenue distribution.

Carbon pricing on shipping is a tool to help close the price gap between fossil fuels and renewable energy, and generate revenues for an equitable transition. A study by UNCTAD, commissioned by the IMO, found that a levy of $150-300/tonne of greenhouse gas, if designed correctly, is the best way to lower the economic impacts of shipping decarbonisation on global GDP growth, and to promote global economic equality.

The policy is negotiated as part of a ‘basket’ of various measures, as an ‘economic measure’, intended to deliver agreed emission cuts in an equitable way: 30% by 2030, 80% by 2040, to reach zero by 2050. The basket also includes a global fuel standard (GFS), a ‘technical measure’, aimed at driving up the use of zero-emission energy on ships to effectively fully power the sector by 2050.

Civil society and NGO statements ahead of the negotiations:

Blánaid Sheeran, Policy Officer, Climate Diplomacy, Opportunity Green, said: “To stay on track and drive international shipping’s decarbonisation efforts, countries must demonstrate their support for ambitious, just and equitable policy solutions at ISWG-GHG-18. We’ve already seen a large number of countries unite around the need for a flat rate levy, with 48 Member States submitting a joint proposal highlighting the support for a price on shipping’s pollution. We hope to hear more countries champion a universal price, in particular, calling for a high starting price and revenues to be distributed in a way that’s just and equitable, and leaves no one behind. No matter the final design of the basket of measures, there will be some form of revenue generation and the way these revenues are distributed will have a direct impact on the nature of shipping’s decarbonisation and whether the IMO fulfills its commitment.”

Delaine McCullough, Shipping Emissions Policy Manager at Ocean Conservancy and President of the Clean Shipping Coalition, said: “To build a more ocean-friendly shipping industry, member states must ensure that both the fuel standard and levy align with the concurrent IMO revision of its Carbon Intensity Indicator, which is intended to advance more efficient and less GHG-intensive shipping”.

Anais Rios, Shipping Policy Officer, Seas At Risk, said: “2025 is a make-or-break year for shipping to clean up its act. Current IMO talks revolve around the adoption of an ambitious levy, accelerating the shift to clean, zero-emission fuels and prioritising energy-efficient vessels. Striving for a high levy must unlock investments to uptake wind propulsion technology – harnessing the only true zero-emitting fuel that is readily available at the high seas: wind. It’s time for the shipping dinosaurs to leave behind the fossil fuel era and embrace real solutions for the well-being of the people and the planet.”

IMO delegate statement ahead of the negotiations:

Ambassador Albon Ishoda, Marshall Islands Special Envoy for Maritime Decarbonization, said: “A global carbon levy, first initiated at the IMO by the Pacific Islands, now has the support of over 50 nations and industry players like the International Chamber of Shipping. The debate is no longer about whether a levy is needed—it is about ensuring it is strong enough to be effective. The momentum is with us, and we are committed to making this transition just and equitable, ensuring that no one is left behind, especially the most vulnerable.”

Simon Kofe, Tuvalu Minister for Transport, Energy, Communication and Innovation, said: “For Tuvalu, climate change is not a distant threat—it is an immediate reality. Our shores are disappearing, our communities are at risk, and yet the world continues to delay action. The shipping industry must not be exempt from its responsibility. A universal greenhouse gas levy is not just about reducing emissions; it is about survival, about justice. The revenues from this levy must be directed toward those on the frontlines—the nations facing existential threats due to emissions they did not create. Anything less is immoral and unacceptable. The time for bold and decisive action is now.”
Source: Hellenic Shipping News Worldwide