Although the International Maritime Organization (IMO) had considered introducing a global emissions levy on shipping to promote cleaner fuels and reduce greenhouse gas emissions, the plan has now been shelved.
The proposed levy would have imposed a flat fee per tonne of carbon emitted, with suggested rates ranging from $18 to $300 per tonne.
It was a central part of broader discussions on carbon pricing mechanisms intended to incentivize a shift away from heavy fuel oil toward cleaner alternatives such as green ammonia, biofuels, and hydrogen.
The levy was seen as a critical step toward achieving the IMO’s target of net-zero emissions by 2050.
While final details—including the exact rate and revenue distribution—were still under negotiation earlier this week, Freight News has confirmed that the levy is “dead in the water” for now.
The collapse followed an IMO meeting at the United Nations’ London headquarters on Thursday, where delegates failed to reach consensus.
Negotiators reportedly could not agree on mid-term technical measures and the necessary economic mechanisms to curb emissions over the next 25 years.
However, it is understood that the IMO has forwarded the draft levy to the Marine Environment Protection Committee (MEPC) in what appears to be a last-ditch effort to salvage the Net-Zero Framework.
Saudi Arabia led a group of 14 countries in voting against the levy, followed by the Marshall Islands and five other Pacific Island nations.
Lobbying efforts are now underway to persuade MEPC members to support the levy.
According to Asia Shipping Media, approval “would automatically lead to the new regulations being circulated as draft amendments to Annex VI of the MARPOL Convention, covering air pollution, for formal adoption at an extraordinary session of the committee in October, when the date of international entry into force would also be decided.”
The Net-Zero Framework is intended to apply to international shipping vessels of 5,000 gross tonnage (gt) and above.
Addressing delegates, IMO Secretary-General Arsenio Dominguez reminded them that the package was “only one step on our journey to 2050.”
