Gunboat climate diplomacy ratchets up a notch

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In April 2025, members of the International Maritime Organisation (IMO) voted overwhelming in favour of the Net-Zero Framework – a global carbon pricing mechanism meant to incentivise the decarbonisation of the shipping industry.

Rather than introduce a blanket global carbon price, the IMO's proposal employs a dual-target global fuel intensity (GFI), a two-tier carbon price, and a trading mechanism (scroll to the end of this article for a primer on how the mechanism was supposed to work in practice).

I say 'supposed' because it should have been a formality for IMO members to pass a motion last October that would have seen the mechanism come into force by 2027.

Although its far from perfect, a uniform global carbon pricing mechanism would have been the most efficient solution to help bring about the decarbonisation of the shipping industry, a sector responsible for emitting 1 Gt CO2 per year (~3% of global emissions).

Unfortunately, American and Saudi officials managed to strongarm a sufficient number of countries to vote in favour of deferring the decision to adopt for one year. Analysis by the UCL Energy Institute revealed that 34 countries significantly switched positions between the April and October IMO meetings.

Taking up the carbon price mantle

Not everyone is put off so easily.

A few months after the October debacle Reuters carried out a survey of maritime industry leaders. They found that while uncertainty surrounding the future of the IMO proposal might lead some shipping companies to take a more cautious approach to investing in low-carbon propulsion technology, most felt that the overall regulatory trend towards decarbonisation has not been blown off course.

Despite the hostile geopolitical backdrop, regional carbon pricing initiatives are showing real momentum,

For example, 2006 marks the first year of compliance for Europe's FuelEU Maritime regulation. As with the IMO's proposal, FuelEU is also targeting a progressive reduction in the greenhouse gas (GHG) intensity of fuels. It covers 100% of voyages between EU ports and 50% of those incoming and outgoing journeys. Furthermore, the emissions from domestic maritime voyages will be included in the UK ETS from 1st July 2026, following in the wake of the EU ETS, which fully phases in maritime emissions this year.

It's not just the wealthy countries of Europe that are implementing a carbon price on maritime emissions. A number of African nations have introduced a levy and using the revenues to help fund climate adaptation.

Gabon and Djibouti have implemented a carbon levy on maritime operators (and air transport) under the Africa Sovereign Carbon Initiative. Since January 2025 the government of Djibouti has levied a tax of $17 per tonne of CO2 (~€14.70) on 50% of the emissions per voyage, both for ships arriving at or departing Djibouti. Gabon introduced its own levy at the same rate in July 2025. At least 13 other African countries are considering implementing a carbon price.

It's not all plane sailing. Liberia was reportedly planning to launch its own levy (at the higher rate of $25 per tonne CO2) from 1st March 2026. However, the Liberian government has since rowed back on this position, stating that "Liberia does not, and will not, impose a carbon levy" on international maritime emissions.

The country's position as the operator with the largest shipping registry (~17% of the global fleet) makes it especially vulnerable to coercion, particularly from governments with a strategic interest in fossil-fuels retaining their predominant role in shipping.

Maritime might is right

By now its becoming increasingly clear that the US administration isn't just ideologically opposed to carbon pricing. It's anathema to everything it is trying to achieve around dominating the Western Hemisphere.