Maersk Expects IMO to Approve Global CO2 Levy Next Year

Shipping giant A.P. Moller-Maersk A/S expects IMO, the industry’s global regulator, to approve a charge on vessels’ greenhouse gas emissions.

At International Maritime Organization (IMO) talks in London, nations have been inching toward new regulations to reign in emissions from a sector that annually spews about a billion tons of carbon dioxide into the atmosphere. Maersk group representative for Europe, said he expects a charge on pollution to be approved in 2025. 

Potential new IMO rules also include a phased reduction in the GHG intensity of energy used by ships. Ultimately, these regulations could slash carbon emissions and possibly force the industry to pay billions of dollars if it keeps emitting.

The IMO, a United Nations agency, is aiming to finalize the new rules next year. They’re then set to come into force in 2027. If it does go ahead and impose a global, mandatory pricing mechanism for greenhouse gas emissions, it will be a world first, according to the World Bank. But with more than 175 member states, finding agreement isn’t always easy.

Maersk’s representative said a previous proposal from Japan for about $60 per ton of emissions was reasonable. He added that a charge of $150 from day-one without any flexibility mechanism is “not gonna work.”