Why in news?
During an International Maritime Organization (IMO) meeting in mid‑October 2025, delegates considered a proposal to levy a global fee on shipping fuel to curb greenhouse‑gas emissions. Former U.S. President Donald Trump dismissed the idea as a “Global Green New Scam Tax” and urged countries to oppose it. The vote was delayed after some member states raised economic and equity concerns. The debate spotlights efforts to decarbonise international shipping, which accounts for around 3 % of global emissions.
Background
The IMO is the United Nations’ specialised agency responsible for maritime safety, security and the prevention of pollution from ships. It was established in 1948 as the Inter‑Governmental Maritime Consultative Organization and held its first session in 1959. Headquartered in London, the IMO today has more than 170 member states. While it sets international regulations for shipping, implementation is the duty of individual governments.
Key facts about the IMO
- Purpose: To facilitate cooperation among governments on rules for ship design, crew training, navigation safety and environmental protection. Its conventions include SOLAS (Safety of Life at Sea), MARPOL (pollution prevention) and STCW (standards of training and certification for seafarers).
- Structure: The Assembly, consisting of all member states, meets biennially to decide strategy and budget. A smaller Council elected by the Assembly oversees work between sessions. Five committees (Maritime Safety, Marine Environment Protection, Legal, Technical Cooperation and Facilitation) develop detailed regulations.
- Membership and voting: Each member state has one vote. Decisions on environmental measures often require consensus because they can influence global trade and costs.
- Funding: The IMO’s budget is financed by contributions from member governments in proportion to their merchant‑fleet tonnage. It also accepts voluntary contributions for technical‑cooperation projects.
The carbon fee debate
- Proposal: The suggested levy would add a surcharge to marine fuel based on its carbon content. Proceeds would support research on cleaner fuels and help developing countries adapt to higher transport costs.
- Support and opposition: Environmental advocates and several Pacific islands argue that shipping must pay for its climate impact. Some developing and oil‑producing nations fear the fee would raise the price of goods and disproportionately affect poorer economies.
- Trump’s intervention: In the midst of the debate, former U.S. President Donald Trump called the proposal a “global scam” and urged nations to reject what he characterised as a tax on consumers. His statement highlights the political sensitivity of climate‑related measures.
- Next steps: The IMO postponed a final decision to allow further study and consensus building. Negotiations are expected to resume in 2026, as the shipping industry explores alternative fuels like methanol, ammonia and hydrogen.
Why shipping emissions matter
International shipping moves about 80 % of global trade by volume. Most vessels burn heavy fuel oil, emitting carbon dioxide, sulphur oxides and particulates. Without new policies, maritime emissions could rise significantly as global trade grows. A carefully designed carbon levy could stimulate investment in cleaner technologies while supporting vulnerable economies.
Source: E&E News · MINT · International Maritime Organization