Pacific Nations Refuse to Drop Carbon Levy Demand at IMO

Pacific Ministers at a press conference at IMO HQ in London. Image Credit: MCST

Delegates from Pacific nations are standing firm on their call for a carbon levy on shipping emissions to be included in the IMO mid-term measures, as discussions continue this week at the MEPC 83 meeting in London.

The group has reiterated its support for a levy with a minimum starting price of $150 per metric tonne of CO2 equivalent, despite mounting opposition.

Their renewed backing comes in the wake of last week's intersessional meeting, during which a flat carbon levy was dropped from the draft negotiating text in favour of a tiered compliance system.

As previously reported by Ship & Bunker, the IMO chair tabled a compromise proposal excluding a fixed carbon levy as an economic measure. The move has triggered polarised reactions among IMO member states, particularly from island nations, which remain among the most vulnerable to the effects of climate change.

Pacific bloc pushes back on diluted proposals

"We urge all Member States to reject watered-down measures – such as any exemptions, credit trading schemes, or vague revenue promises – that risk turning this historic opportunity into another missed moment, Ambassador Albon Ishoda, Marshal Islands special envoy for maritime decarbonization, said.

"Let us remember what is at stake. For the Marshall Islands, Fiji, Palau, Tuvalu, Vanuatu, and many others, failure at MEPC 83 means accelerating sea-level rise, displaced communities, and existential loss."

Ambassador Ishoda acknowledged the momentum seen in recent negotiations, but stressed that the outcome must remain grounded in science and responsive to the needs of the most vulnerable nations.

He issued a clear warning against any compromise that sidelines core priorities.

"If the Working Group Chair sidelines our key priorities, we are prepared to act accordingly," he said.

"We did not come to London to rubber-stamp a diluted compromise."

Ishoda also criticised suggestions that could dilute the ambition of the measure, including proposals for emissions exemptions, market-based credit trading mechanisms and non-committal pledges on how revenues would be used.

It remains to be seen whether the carbon levy can make a return to the IMO's mid-term package. If it does, a key question will be whether it reflects the $150 per tonne threshold favoured by Pacific nations — or settles below $100, a level some experts argue would be insufficient to meaningfully drive shipping decarbonisation.