IMO Proposes a New GHG Emissions Pricing Mechanism for Shipping Industry

As early as 2027, ship operators might have to pay an IMO-imposed charge per tonne of CO2 emitted. The International Chamber of Shipping (ICS) has put forward a proposal that has garnered support from 47 governments and aims to introduce an annual contribution by ships for their greenhouse gas emissions to a multi-billion-dollar International Maritime Organization (IMO) fund.

According to the ICS, if approved by IMO Member States in April 2025, the maritime GHG emissions pricing mechanism could come into effect globally in early 2027.

The joint proposal is backed by major shipping nations like Greece, Japan, Korea, and the United Kingdom, along with flag states such as Bahamas, Liberia, Marshall Islands, and Panama. It also has support from all EU States, African countries like Nigeria and Kenya, and small island developing states from the Caribbean and the Pacific.

The proposed amendments to the IMO MARPOL Convention would require shipping companies to make GHG contributions per tonne of CO2 emitted to a new “IMO GHG Strategy Implementation Fund.”

ICS Secretary General, Guy Platten, stated, “The industry fully supports the adoption of a GHG pricing mechanism for global application to shipping. The joint text presented by this coalition is a pragmatic solution to incentivize the rapid energy transition in shipping towards achieving net zero emissions by 2050.”

The proposal will be discussed at an important IMO meeting in February. If approved in April 2025, the amendments could take effect globally in early 2027, with the collection of annual GHG contributions starting in 2028.

Read the full joint proposal to IMO for a maritime GHG emissions pricing mechanism here.