IMO Delays Global Shipping Carbon Pricing by One Year

Governments at the International Maritime Organization meeting in London voted on Friday to postpone by one year a planned adoption of a global carbon pricing scheme for shipping, delaying a decision on a measure that would have imposed fees on vessels that exceed greenhouse gas intensity limits. The Extraordinary Session of the Marine Environment Protection Committee met Oct. 14–17 to consider the NetZero Framework and voted 57 in favor of delaying adoption, 49 against and 21 abstentions.

The proposal would have introduced a carbon price on large oceangoing ships, with draft rates of 100 or 380 per metric ton of carbon dioxide for emissions above specified baselines. Proponents said the levy could generate roughly 10 billion to 12 billion dollars annually, rising in some projections to as much as 15 billion by 2030, and would fund investments in cleaner fuels, green shipping technology and support for vulnerable countries to manage transition impacts. The plan targeted vessels over 5,000 gross tonnage, which account for about 85 percent of international shipping emissions.

Supporters of the framework, including the European Union, several major shipping associations...