The IMO Must Tighten Rules On Shipping Carbon Emissions

22nd April 2025

Most global trade relies on shipping, which accounts for about 3% of global climate emissions due to heavy fuel use. One of the simplest and most effective ways to cut these emissions is to slow ships down. A 10% speed reduction can cut a ship’s emissions by nearly 20%, even if more ships are needed overall. This strategy requires no new technology and can be implemented immediately.

The IMO Must Tighten Rules On Shippings Carbon Emissions

Cutting fuel use also reduces other harmful byproducts, like health-damaging particulates and oily sludge, which is often illegally dumped at sea. It also lessens the toxic waste generated by exhaust gas scrubbers, a largely unregulated and growing source of marine pollution.

Few actions offer such broad environmental benefits. Recent IMO meetings must seize this moment to adopt bold climate measures, including a global low-GHG fuel standard and a levy on ship emissions, to steer the shipping industry toward a cleaner, fairer future. An IMO working group met in London recently to discuss strategies for cutting greenhouse gas emissions from shipping, including a potential carbon tax. While the IMO is looking to approve emissions reduction measures at its Marine Environment Protection Committee meetings in the Spring, it is yet to commit to a carbon levy.

Supporters of a levy disagree on the price. Some suggest $20 per tonne of CO2, the EU proposes $100, and the 6PAC+ group of island nations advocates for $150. Research from University College London indicates that a $150 starting price could generate enough revenue to fund the energy transition and support a fair, equitable shift for vulnerable communities.

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