By Enes Tunagur and Jonathan Saul
At the International Maritime Organization (IMO) meetings in London, member states voted 57–49 to postpone for one year a decision on establishing a global carbon price for international shipping. The move followed strong opposition from the United States and Saudi Arabia, both of which rejected the idea of a levy on maritime emissions. The delay is viewed as a setback for the European Union and other countries, including Brazil, that have been advocating for a global decarbonisation mechanism. Environmental groups described the outcome as leaving the shipping sector “drifting in uncertainty.”
The IMO Secretary-General, Arsenio Dominguez, urged delegates not to celebrate the deferral, acknowledging that significant concerns remain unresolved. The decision highlights the deep policy divide between countries favouring coordinated global action and those prioritising national economic interests. With shipping responsible for nearly 3% of global CO₂ emissions, the absence of a global pricing framework means that pressure will intensify on regional systems, particularly the EU Emissions Trading System (EU ETS) and FuelEU Maritime, to drive decarbonisation.
FACS Perspective
The IMO’s decision reveals the growing fragmentation of carbon regulation in shipping. While global consensus remains elusive, regional compliance schemes are moving ahead, and shipowners operating to, or from Europe will face escalating carbon costs regardless of international progress. At FACS, we view this as a pivotal moment for proactive compliance planning. With, or without, a global carbon levy, maritime companies should always operate efficiently within an increasingly carbon-priced environment.
This article is based on reporting by Reuters. All rights, including copyright, belong to Reuters and the original authors.