HomeCarbon NewsGlobal Shipping Shakeup

Global Shipping Shakeup

The International Chamber of Shipping backed plans for a global surcharge on carbon emissions to fund the shift towards climate-friendly fuels. Their plan, which will be proposed to the United Nations, requires all international vessels of a specific size to pay per metric ton of carbon they emit.

The proposal has been well received by environmental groups and the International Maritime Organization, a U.N. body. If this surcharge passes, it will impact over 80% of the world’s merchant fleet. As of now, a price has not been set.

Director of Global Transportation at the Environmental Defense Fund, Aoife O’Leary, said, “We will know they are serious about real progress when they embrace a level of ambition consistent with what climate-vulnerable island nations have already proposed.”

Two nations with large shipping fleets and vulnerable territories (The Marshall Islands and The Solomon Islands) have suggested the surcharge starts at $100 per ton.

The Secretary-General of International Chamber of Shipping, Guy Platten, said, “This proposal sets out how to practically create a market-based measure for the global shipping industry, to quickly move towards an effective price. Rather than make guesses for PR purposes, we want to come to a number that will decarbonize the sector without disenfranchising huge proportions of the developing world on the way.”

Currently, the shipping industry accounts for nearly 3% of greenhouse gas emissions. That percentage is expected to increase over the next several years.

The International Chamber of Shipping aims to invest the money from this surcharge into a climate fund that would subsidize clean fuel alternatives. It is important to note that they oppose piecemeal regional measures, such as the current tariff being discussed within the EU.

Whether this global surcharge or the regional one being proposed by the EU is enacted, it is safe to say there is a drive for change. With these proposals on the table, and the global carbon offsetting industry expected to hit $22T by 2050, a net-zero future seems possible.

Most Popular
LATEST CARBON NEWS

Top 4 Nickel Companies Driving Electrification and Clean Energy in 2025

Nickel is a versatile metal critical for the clean energy revolution, especially in electric vehicle (EV) batteries. Its role in enhancing battery energy density...

Gold Standard Launches Global Carbon Market Regulations Tracker

Countries worldwide have implemented various strategies and mechanisms to measure and reduce emissions to address climate change effectively. Among these, the carbon market has...

Boeing’s Big Move: Boosting EU Aviation with Norsk e-Fuel’s SAF

The latest move in the sustainable aviation fuel (SAF) sector is Boeing's partnering with Norway's Norsk e-Fuel to help develop one of Europe’s first...

Nickel: The Metal Driving the Electric Vehicle Revolution

The shift to electric vehicles (EVs) is reshaping the automotive industry, creating unprecedented demand for critical metals. An EV contains 6x more critical metal than...
CARBON INVESTOR EDUCATION

Top 5 Carbon ETFs for Sustainable Investing in 2025

Like stocks, investors can buy and sell Exchange-Traded Funds (ETFs) whenever the market is open. Often investing in carbon credits through ETFs offers a...

Green AI Explained: Fueling Innovation with a Smaller Carbon Footprint

As artificial intelligence (AI) continues to transform industries and unlock new opportunities, its environmental impact is also a matter of concern. While AI holds...

What’s Shaping North America’s Natural Gas in 2024? Insights from Wood Mackenzie

The natural gas market has immensely benefitted this year from robust storage levels and stabilized prices after the sharp spikes of 2022. However, challenges...

EU’s Green Bonds to Slash 55 MTS of COâ‚‚ Annually. Can it Hit Europe’s 2050 Net Zero Target?

The European Commission released its NextGenerationEU (NGEU) Green Bonds Allocation and Impact Report 2024 explaining how proceeds from green bonds are being used to...