On April 11, 2025, in a remarkable move towards reducing climate pollution, representatives from around the world negotiated a draft agreement in London under the International Maritime Organization (IMO), a UN agency. This new pact mandates that all ships involved in international trade must either cut their greenhouse gas emissions or pay a designated fee, with funding aimed primarily at facilitating the transition to cleaner fuels. Although the measures were less ambitious than anticipated, they represent a fundamental shift for the shipping industry, which is responsible for roughly 3% of global warming emissions, equating to the aviation sector.
Despite the recent tumult in global trade dynamics and the United States’ controversial withdrawal from the negotiations earlier in the week, the agreement saw no other nations follow suit, signaling strong international cooperation. Faig Abbasov, a shipping director for the European advocacy group Transport and Environment, emphasized the importance of this deal, stating, "This will be the first binding decision that will force shipping companies to decarbonize and switch to alternative fuels.”
Set to take effect in 2028 pending widespread approval from member countries, the agreement encompasses all vessels regardless of their flags, including many that are registered in the U.S., even though most operate under foreign flags. The response from Washington regarding the implementation of these fees remains uncertain as the international community anticipates further developments.
