Global Shipping Agency Approves New Pollution Rules Despite U.S. Opposition {update}

The U.S. walked out of the talks in London this week. It urged other countries to do the same and warned it would take action if American ships were charged fees. Despite this, most nations supported the plan, seeing it as a necessary step to fight climate change.

How the New System Will Work

From 2028, ships must follow two pollution standards:

1. Main Limit: All ships must stay below this level.
2. Stricter Limit: Ships that pollute less than this will earn rewards.

If a ship emits more than the main limit, it will be fined 

Here’s how the penalty system works:

• Ships that go over the first (basic) limit will be fined $380 per metric ton of CO2 released beyond that level.
• Ships that exceed the stricter limit but still remain under the basic cap will pay a lower penalty of $100 per ton.
• Vessels that stay well below the strict level will earn carbon credits. These credits can be sold to other ships that are not meeting the standards.

For example:

• By 2030, ships must cut emissions by 8% compared to 2008 levels to meet the main limit. The stricter limit requires a 21% reduction.
• By 2035, the main limit tightens to 30%, while the stricter limit becomes 43%.

Cleaner ships will earn credits, which they can sell to ships that fail to meet the standards.

Not all countries supported the plan. Some, like China, Brazil, and Saudi Arabia, opposed a stronger carbon tax proposed by the European Union and Pacific nations. The final agreement was reached after compromises.

Saudi Arabia, Russia, and Iran even demanded a vote—something rare at the IMO, where decisions are usually made by agreement.

The rules still need final approval at an IMO meeting in October. If passed, they will take effect in 2028.

This decision marks a big step in reducing shipping pollution, but challenges remain. With the U.S. opposing the fees, future tensions could arise over how these rules are enforced globally.

The world’s shipping industry, responsible for nearly 3% of global CO₂ emissions, is now under pressure to go green—whether all nations agree or not.