Shipping industry push for world-first CO2 fees stalls at talks

The CO2-based charge, backed by multiple countries and a major trade organization, is not billed as a tax and isn’t intended to change shippers’ behavior

Shipping’s global regulator signalled that a tiny CO2-based charge on vessels’ fuel consumption will not be approved at a meeting this week, underscoring the challenge facing the industry in its bid to decarbonise.

While the proposed price is low, the levy is significant because it would be the first ever mandatory, global “fee-based” carbon price, according to the World Bank. The plan was discussed at international talks on Wednesday and, with many countries raising concerns, provisionally deferred to a future meeting.