London meetings advance global shipping emissions pricing scheme

In London, negotiations are intensifying among countries regarding a global carbon pricing scheme for shipping emissions, with meetings taking place under the International Maritime Organization (IMO). The discussions, which began on September 23, 2024, have seen an increase in support for a global greenhouse gas (GHG) levy, rising from 34 to 39 countries. However, 15 states remain opposed or favor less stringent measures. The shipping industry contributes approximately 3% of global emissions, a figure projected to rise without intervention. The IMO aims to finalize a pricing mechanism by April 2025, with a final adoption expected by the end of that year. This initiative is part of broader commitments made by IMO countries to achieve net-zero shipping emissions by 2050, with interim targets set for 2030 and 2040. The proposed pricing mechanisms include various options for a flat-rate GHG levy and fee-rebate systems. Additionally, discussions are ongoing regarding the allocation of revenues generated from the levy, with suggestions to support the adoption of zero-emission technologies and assist developing countries in their decarbonization efforts. The impact of these measures is anticipated to be significant, particularly for vulnerable nations that are most affected by climate change and the transition to sustainable shipping practices. A comprehensive impact assessment focusing on these countries will be part of the ongoing discussions.