What’s ‘Green Transition’ in Shipping? Maritime Nations Meet In London Today To Slash Emissions In Sea

As the world’s biggest maritime nations gather in London today, the focus is on one ambitious goal — steering the shipping industry away from fossil fuels in what is being called a “green transition”. The meeting, being held at the International Maritime Organization (IMO) headquarters through Friday, could result in the first global pricing system for greenhouse gas emissions — effectively, a carbon tax for the shipping industry.

If adopted, the landmark deal would mark the first time countries agree to impose a global fee on emissions, setting a precedent for climate regulation beyond national borders.

Penalising Polluting Ships, Rewarding Cleaner Ones

The proposed Net-Zero Framework aims to make the global shipping industry — responsible for about 3% of worldwide emissions — progressively cleaner. It would limit the greenhouse gas intensity of marine fuels and establish a pricing mechanism that penalises polluting ships and rewards cleaner ones.

Under the plan, ships that exceed emission thresholds will have to pay $380 per ton of carbon dioxide equivalent to meet base-level compliance and an additional $100 per ton penalty if they fail to meet stricter direct targets. Vessels that outperform targets can earn surplus credits, which they can sell to other operators or to the IMO.

The money raised — estimated between $11 billion and $13 billion annually — would go into an IMO-managed fund to support cleaner technologies, fuel innovation and help developing nations modernise their fleets.

“This agreement provides a lesson for the world that legally-binding climate action is possible,” said Delaine McCullough, shipping program director at Ocean Conservancy.

The Shift to Cleaner Fuels

Most ships today run on heavy fuel oil, a tar-like residue that releases high levels of carbon dioxide and other pollutants. The new framework aims to accelerate a shift towards low and zero-emission fuels such as green ammonia, green methanol, hydrogen and electrification — alongside energy efficiency and onboard carbon capture.

Since ships have a lifespan of about 25 years, industry observers say the transformation must begin now if shipping is to reach net-zero by 2050. The new rules, if adopted this week, would take effect in 2027, with penalties for high-emission ships starting in 2028. (With AP inputs)

A Divided Global Debate

The United States, under the Trump administration, has rejected the proposal and warned of retaliation against nations that support it — setting the stage for a major diplomatic clash.

Others, including the International Chamber of Shipping, which represents more than 80% of the global merchant fleet, have urged nations to adopt the framework, calling it “a vital step towards fair and effective decarbonisation”.

Concerns Over Biofuels

While many see the proposal as a breakthrough, environmental groups caution that biofuels derived from food crops could create new ecological problems.

“The way the rules are structured makes biofuels the cheapest option to comply — but that risks pushing food production aside and driving deforestation,” said Faig Abbasov of Transport and Environment.

His organisation wants the IMO to push harder for scalable alternatives like green ammonia and green methanol, which are expected to become economically viable only in the 2040s.

What’s at Stake in London

If nations approve the framework, the shipping industry would take its biggest step yet toward decarbonisation — aligning with global climate goals while creating a new market for green marine fuels.

If the deal fails, experts warn, progress will stall.

“Failure this week will certainly lead to delay, which means ships will emit more greenhouse gases for longer, continuing their outsized contribution to the climate crisis,” said John Maggs of the Clean Shipping Coalition.

With voting expected later this week, all eyes are on the IMO to see whether the maritime world’s most polluting sector can finally set sail towards a cleaner future.

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