Global carbon levy anticipated by 2027

  • April 12, 2024
  • News

The 81st session of the Maritime Environment Protection Committee (MEPC) concluded at the International Maritime Organization (IMO) signalled a probable introduction of a greenhouse gas (GHG) levy by 2027.

According to insights provided by UMAS, a London-based organization monitoring green shipping regulations, the meeting witnessed encouraging progress, with an increased number and variety of countries endorsing the idea of a GHG levy.

A statement from the World Shipping Council, representing liner shipping interests, highlighted that the MEPC has established a framework for mid-term measures, encompassing a fuel standard and an economic measure, and has formed expert groups necessary for laying the groundwork for achieving the target of net-zero emissions by 2050.

During a discussion with journalists at the IMO’s London headquarters, Arsenio Dominguez, the secretary-general, affirmed, “We will implement a pricing mechanism,” expressing certainty regarding the matter.

Further deliberations on the specifics of the levy’s operation are slated for MEPC 82, scheduled for September.
Additionally, notable outcomes from the recent meeting include the endorsement of SOx and NOx emission control areas in the Norwegian Sea and the Canadian Arctic, both anticipated to be enforced by 2026.