Mon Sep 30 04:45:37 UTC 2024: ## Global Shipping Industry Inches Closer to Carbon Pricing Scheme
**London, UK** – Negotiators from the International Maritime Organization (IMO) are meeting this week in London for the final round of discussions before a universal carbon pricing scheme for ships is adopted in Spring 2025.
The IMO, a United Nations agency, is working to curb the shipping industry’s significant contribution to global greenhouse gas emissions. While a 2050 net-zero target has already been set, the focus now is on establishing a concrete pricing mechanism to incentivize emissions reductions.
Support for a global levy on shipping emissions has grown since the initial negotiations last week. Now, 39 countries are backing the measure, up from 34 in March. However, 15 countries remain opposed to a levy or prefer alternative mechanisms, such as stricter fuel standards.
This week’s discussions aim to reach a consensus on the specific design of the pricing mechanism, including the starting price and scope. Several proposals are on the table, including a flat-rate levy and a fee and rebate system.
The revenue generated by the levy is also under debate. Some suggest using it to accelerate the adoption of zero-emission fuels and technologies, while others propose supporting decarbonisation efforts in developing countries.
“The most relevant voices in this debate are the view of countries, particularly the most climate vulnerable ones,” noted Ana Laranjeira, Senior Manager at Opportunity Green. “They bear the brunt of the impacts from both climate change and the transition to zero emissions, yet often struggle to get an appropriate platform at these climate deliberations.”
The IMO aims to finalize the carbon pricing scheme in April 2025, with full adoption expected by the end of the year. The shipping industry is responsible for approximately 3% of global emissions, a figure expected to rise significantly without decisive action.
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