Environmental (Commonwealth Union)_ Tensions are rising at the International Maritime Organization (IMO) in London this week, as developing nations have accused wealthier countries of “backsliding” on long-promised climate commitments. At the heart of the conflict is a long-awaited deal to decarbonise the global shipping industry, a sector responsible for over 2% of the world’s greenhouse gas emissions and a key contributor to climate change.
For over a decade, efforts to cut emissions from shipping have struggled to move past diplomatic deadlock. But now, with the clock ticking and climate impacts mounting, 175 nations have gathered to finalise a potentially game-changing agreement, one that could introduce a global carbon levy on ships, with proceeds used to support vulnerable nations battling climate extremes.
However, the unity required for such a landmark policy appears to be fracturing. Countries including China, Brazil, and Saudi Arabia have opposed the proposed emissions-based levy, citing concerns over potential price hikes for consumers. Even the European Union, which previously backed the measure, is reportedly softening its stance in favour of a compromise.
For many developing and climate-vulnerable nations, particularly small island states already suffering from rising sea levels and violent weather, this retreat from the levy proposal feels like a betrayal.
“It is difficult to understand what these countries are thinking,” said Ambassador Albon Ishoda of the Marshall Islands, speaking for the Pacific and Caribbean’s 6Pac+ alliance. “The most vulnerable countries are acting as the adults in the room.”
Ishoda emphasized that the world agreed just last year on a roadmap to decarbonise shipping by 2050. Now, with talks underway to set mid-term targets and mechanisms like carbon pricing, the fear is that powerful countries are walking back their commitments under the guise of protecting sovereignty or consumer prices.
Yet evidence suggests the financial impact on global trade would be minimal. Simon Kofe, Tuvalu’s transport minister, broke it down clearly: If shipping adds just $3 to a $100 pair of imported shoes, the proposed $150/tonne carbon levy would only increase that cost to $3.72. The shoes would retail for $100.72, hardly the dramatic price spike some claim.
“Our levy proposal ensures that the cost of pollution is borne by those responsible,” said Kofe. “By placing a levy directly on emissions, we uphold the principles of fairness, accountability, and climate justice.”
For small island nations like Tuvalu and the Marshall Islands, the issue isn’t just about policy; it’s about survival. Despite their negligible contribution to global emissions, the consequences disproportionately affect these countries. The levy, they argue, would curb shipping emissions and provide vital climate financing that they can’t access elsewhere.
Despite the resistance, optimism lingers. Arsenio Dominguez, Secretary-General of the IMO, expressed confidence in the negotiations, reminding delegates of their prior commitments under the IMO 2023 greenhouse gas strategy. The goal now is to push through binding midterm measures, including a global fuel standard and an emissions pricing system, that could make zero-carbon shipping a reality by mid-century.
“These are not just climate aspirations,” Dominguez said. “They will become mandatory for ships operating globally.”
Yet with the talks entering their final days and deeply technical details still being debated, observers worry that meaningful action could again slip through the cracks. Constance Dijkstra of the think tank Transport and Environment issued a stark warning: “We have reached extra time in the IMO negotiations, and the IMO is sleepwalking into failure.”
The United States, despite recent global trade tensions triggered by President Trump’s new tariffs, has reportedly not been obstructive during these talks. But the broader geopolitical atmosphere, alongside economic uncertainty and a fragmented international climate effort, adds further pressure to what is already a high-stakes negotiation.
If a deal is reached this week, it would still need to pass through rounds of refinement before final adoption in October, delaying real-world implementation even further.
For developing nations, the hope is that the IMO won’t squander what could be the last real opportunity to align one of the world’s most polluting sectors with global climate goals. The carbon levy, while just one piece of the puzzle, represents more than a policy; it symbolizes a commitment to equity, justice, and the shared responsibility of protecting our planet.
