Ocean shipping carbon tax could gouge US consumers, say opponents 

Government representatives are meeting this week to finalize the first-ever global carbon tax on ocean shipping emissions in a move that opponents say could disproportionately hit American consumers.

The initiative is being driven by the International Maritime Organization, which regulates global shipping, following a 2023 agreement that sets a goal of net-zero shipping emissions by 2050. 

Members of the organization’s Marine Environment Protection Committee are gathering this week in London where the IMO is headquartered. They’ll try to work out emissions fees and a green protocol for shipping.

The measures, if adopted, would become mandatory for participant countries’ vessels in container shipping, crude oil and other cargo transport. The Biden administration supported the zero emissions goal in 2023. The Trump administration has made no public statement on the IMO proposal.

Proponents say the fees and standards for green fuels will close the cost gap between fossil fuels and alternative fuels such as ammonia, hydrogen and methanol. They say the fees are the most effective way to push vessel operators to adopt green fuels industrywide, moving toward the IMO’s goal of zero emissions by 2050.