Global Shipping Emissions Levy
The maritime industry is undergoing changes to address climate change. The International Maritime Organization’s Marine Environment Protection Committee recently voted on a new emissions levy. This decision marks a very important moment in global shipping regulations. The proposed Market-Based Measure (MBM) aims to balance environmental needs with economic fairness. Key Proposals at MEPC-83 Five major proposals were discussed at the meeting. The International Chamber of Shipping suggested a fixed levy for each tonne of CO₂ emitted. China proposed a market-driven approach allowing ships to trade compliance units. The European Union recommended a fixed greenhouse gas levy managed by an IMO fund. India offered a ‘bridging mechanism’ targeting under-compliant ships while rewarding those using zero or near-zero fuels. Singapore enhanced India’s model with a GHG Fuel Standard and a tiered system for emissions. Voting Outcome and Next Steps The MEPC-83 voted 63 to 16 in favo...