World's Top Flag States Support GHG Levy in Shipping

by Ship & Bunker News Team
Thursday January 9, 2025

Panama and Liberia, alongside 43 other countries, have voiced their support for a GHG levy ahead of the upcoming MEPC meeting at the IMO.

A GHG levy will help to bridge the price gap between fossil marine fuels and zero or near-zero emission alternatives, the two countries along with several EU countries said in their proposal to the IMO. 

The Liberian Registry is the world's largest registry with about 16.29% of the global fleet sailing under its flag, followed by Panama with 14.73% share, the Liberian Registry said on its website citing data from Clarksons.

Ship registries, also known as flag states, play a critical role in international shipping. They provide vessels with nationality, allowing them to sail internationally under the laws and regulations of the registry's country.

The support of two of the largest flag states strengthens global efforts to impose a levy on shipping emissions

The revenues generated through these levies can be used support uptake of low-carbon fuels and support development of greener technologies, the countries said.

Global shipping powerhouses like Japan and Greece are also backing this joint proposal.

The IMO Marine Environment Protection Committee (MEPC) 83 meeting is set to take place in April, where member states are expected to finalise mid-term measures for formal adoption in October.

Ship & Bunker News Team
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