Archive · 19 May 2025
Global Shipping to Tackle Emissions with New Mandatory Framework
Imagine big ships that carry things across the sea.
These ships make a lot of pollution.
The countries that make the rules for these ships (the IMO) decided they need to clean up the pollution.
They came up with a plan where ships have to pay a fee based on how much pollution they make.
Some countries wanted stricter rules, while others wanted less.
Some are worried about costs, while others want to protect the planet.
India is expected to benefit.
This means that in the future, ships might be powered by cleaner energy, and India might be able to sell that clean energy to other countries.
The IMO adopted a mandatory emissions levy framework, making international shipping the first global industry to do so.
The framework is a hybrid model based on India's proposal, involving a GHG Fuel Standard and a tiered system.
Oil-exporting countries opposed significant transitions to green fuels, while small island nations advocated for steep carbon levies.
Shipping contributes about 2.8% of global emissions, with projections of a potential rise of up to 250% by 2050.
India is expected to be a long-term beneficiary, potentially becoming a global hub for clean energy exports.
- Who
- The International Maritime Organization (IMO) and its member nations.
- What
- The IMO adopted a mandatory emissions levy framework for international shipping.
- When
- At the MEPC-83 session, with ongoing implementation.
- Where
- Globally, with a focus on international shipping routes.
- Why
- To reduce greenhouse gas emissions and align with climate goals like the Paris Agreement.
Small Island Nations
Oil-Exporting Countries
Approach to Green Fuels
Small Island Nations
Advocating for steep carbon levies, seeking to redirect revenues into broader green development initiatives.
Oil-Exporting Countries
Prioritize protecting their fossil fuel markets.
Levy on emissions
Small Island Nations
Concerned about the necessity and feasibility of a green levy altogether.
Oil-Exporting Countries
Push for minimal levies to preserve competitiveness while focusing on investments in cleaner fuels.
- Emissions Contribution
- Shipping emits ~2.8% of global emissions annually
- IMO Decision
- Adopted a mandatory emissions levy framework.
- Framework Type
- Hybrid model based on India's proposal
- India's Fuel Spend
- $400 million annually on fuel (international fleet).
- India's Benefit
- Potential to become a clean energy export hub.
- Green Hydrogen
- India's green hydrogen standard is within IMO's reward thresholds