World’s First Global Carbon Tax For Shipping Approved, India Among Supporters

The International Maritime Organization (IMO) has approved draft rules that will set a legally binding framework to reduce greenhouse gas (GHG) emissions from ships.

The goal is to reach net-zero emissions by or around 2050.

The new regulations, approved during the 83rd session of the Marine Environment Protection Committee (MEPC 83) held from April 7–11, 2025, include two major tools: a mandatory marine fuel standard and a global pricing system for emissions.

These are expected to come into force in 2027, after formal adoption in October 2025.

These rules will apply to large ships over 5,000 gross tonnage, which are responsible for about 85% of international shipping’s total CO₂ emissions.

The draft rules form part of the IMO Net-Zero Framework, which is the first ever to combine a fuel standard and carbon pricing across an entire global industry.

On April 11, a history was made when 63 countries, including India, China, and Brazil, voted