In a major step toward maritime decarbonization, the UN’s shipping agency has approved the world’s first global carbon pricing plan for the industry—despite strong opposition from the U.S.
This is the first time the global shipping industry—which produces about 3 percent of the world’s emissions—will face binding international climate rules.
The plan by the International Maritime Organization (IMO) is expected to be officially adopted in late 2025 and is aimed at helping the sector reach net-zero emissions by around 2050.
Starting in 2028, ships will need to switch to cleaner fuels or pay high penalties if they exceed set pollution limits. The new scheme, known as J9, is expected to raise $30–40 billion by 2030 to fund clean energy efforts in global shipping.
IMO charts historic course
The rules will apply to ships larger than 5,000 gross tonnes and will be reviewed after three years.
Ships will be judged against two emissions benchmarks. Those falling short of the stricter goal will owe $100 per tonne of CO₂ or equivalent greenhouse gases above the target. Ships that fail to meet even the lower bar face up to $380 per tonne in penalties.
Instead of paying the fines, shipowners can also buy carbon credits from ships that are using greener fuels and meeting both targets.
The stricter goal is to cut greenhouse gas emissions per unit of fuel by 17% by 2028, and 21% by 2030, compared to 2008 levels. The easier goal is a 4% cut by 2028, rising to 8% by 2030.
The money raised—estimated at around $10 billion per year—will be used to help the shipping industry adopt low-carbon technologies, and support poorer countries that may be hit hardest by these changes. The U.S. disagreed with this part of the plan.
Global talks expose rifts
The IMO vote showed how divided countries are on this issue. Sixty-three nations, including China, the EU, India, and Japan, supported the plan. Sixteen countries, mostly oil-producing states, including Saudi Arabia, the UAE, Russia, and Bahrain, voted against it.
Another 25—including some Pacific Island nations—chose not to vote.
Meanwhile, the U.S. walked out of the talks and warned it would take “reciprocal measures” if American ships were fined under the new rules.
The agreement took nearly two years to reach and reflects a middle-ground solution. Some countries wanted a simple tax on all emissions, while others preferred a system where ships could trade pollution credits.
Pacific Island nations, which are at high risk from rising sea levels, pushed for a flat fee to encourage faster use of green fuels.
But large exporting countries—and recently the U.S.—said the extra costs could raise prices on goods like food, especially since low-emission fuels are still hard to come by.
IMO Secretary-General Arsenio Dominguez called the deal an important moment.
“This agreement may not be perfect, but it gives us a strong foundation to move forward,” he said. “We’ve taken another step toward tackling climate change and modernizing global shipping.”