17 Countries Back Adding $150/MT Carbon Levy to Bunker Sales

by Ship & Bunker News Team
Thursday March 14, 2024

Support is growing for the imposition of a carbon levy on bunker sales ahead of a crucial IMO meeting next week.

At the GHG working group at the IMO this week, a total of 17 countries are currently backing a proposal to add a $150/mtCO2e levy to bunker sales.

The IMO's Marine Environment Protection Committee is set to discuss a variety of decarbonisation proposals at its meeting in London from March 15-22.

A $150/mtCO2e levy would add about $467/mt to the price of VLSFO.

"Delegates at the International Maritime Organization have the unique opportunity to climate-proof global trade by decarbonizing the shipping industry," Panos Spiliotis, IMO delegation lead at the Environmental Defense Fund, said in an emailed statement.

"A global greenhouse gas pricing mechanism is a central pillar of that ambition, and this week showed that the international community – including many developing countries and small island states – are leading the way.

"As we head into further talks next week, I'm hopeful more countries will support measures that fully deliver on the IMO's 2023 Strategy."