IMO’s climate levy faces resistance from major economies: KSA, China, Brazil, and 12 other countries have formally opposed a proposed global levy on shipping emissions, The Guardian reported on Monday. The countries argued that the levy — basically a greenhouse gas (GHG) tax pricing mechanism — could harm developing nations’ exports, drive up food prices, and deepen global inequalities, according to a submission (pdf) to the United Nations’ International Maritime Organization (IMO) on 31 January. They also claimed that the tax is unnecessary for meeting the IMO’s GHG reduction targets.

IN CONTEXT- The proposed levy on GHG emissions will be discussed at the 18th IMO meeting this week and will be followed by another round of talks in March before a decision is taken in April. If adopted, the levy is expected to enter into action globally in early 2027.

Some are on board: At least 46 countries — representing around two-thirds of the global shipping fleet — support the levy, viewing it as a critical tool to raise USD bns annually for climate adaptation in vulnerable regions. Countries including Greece, Japan, South Korea, the UK, the European Commission, and the International Chamber of Shipping, have proposed tax rates ranging from USD 18 to USD 150 per tonne of GHG emissions.

Key disputes: Some industry players argue that the funds should be directed toward helping shipping companies transition to lower-carbon fuels and vessels. However, many developing nations strongly oppose this, insisting that the proceeds should qualify as climate finance to support their emission reduction and adaptation efforts.

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