Global shipping industry moves to reduce its pollution, despite Trump administration
Every time you buy something — whether it’s a new pair of shoes or a coffee maker — it probably starts its journey to you by crossing an ocean on a massive ship. That’s because ships transport 90% of the world’s goods.
These cargo ships, tankers and bulk carriers also run on some of the world’s dirtiest fuel, quite literally the dregs of the oil refining process, the sludgy leftovers after all the cleaner fuels have been extracted for airplanes and cars.
“Shipping is one of the hardest industries to clean up because it’s so reliant on these dirty fossil fuels,” says Environmental Defense Fund’s Natacha Stamatiou, an expert on global shipping.
But something changed recently that could drastically reduce pollution from shipping: Starting in 2028, international cargo ships will have to pay a fee if they exceed a certain amount of pollution.
The new fee system is the result of a deal struck by the countries that are a part of the U.N.’s International Maritime Organization, which regulates global shipping. The amount of pollution allowed declines over time, pushing the industry toward cleaner fuels and technologies like green hydrogen and wind power.
At the same time, the billions collected by this new fee system will be invested in the development and deployment of zero-emission shipping solutions as well as helping the most climate-vulnerable countries, like small island nations, adapt to the impacts of climate change.
“This is a huge step forward,” says Stamatiou, adding that for years IMO negotiations have been bogged down by resistance due to economic concerns — both valid and perceived.
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Adding another layer of difficulty, the U.S. pulled out of this year’s IMO talks in London and pressured other nations to oppose the multilateral process altogether.
“The April negotiations were a roller coaster of emotions,” Stamatiou recalls. “We faced an enormous amount of uncertainty, and until the deal was reached, it wasn’t clear if all these nations could reach a compromise. This deal marks an important first step, even as the push for stronger ambition continues.”
Once in effect, the price on pollution will make the true climate cost of shipping more visible to companies, giving them a financial incentive to rethink their supply chains and chose suppliers and routes that minimize emissions.
“We’re at a pivotal moment,” Stamatiou says. “If the shipping industry can successfully confront its climate impact and adopt cleaner fuels and technologies, it will set an example for other global industries.”
The new regulations are set to be formally adopted this October.
