India Supports First Global Carbon Tax on Shipping | 15 Apr 2025

Source: TH 

India and 62 other nations have voted in favour of the world's first-ever global carbon tax on the shipping industry, imposed by the United Nations' shipping agency, the International Maritime Organisation (IMO). 

• Global Shipping’s Contribution: The shipping industry contributes around 3% of global greenhouse gas emissions, a sector previously not included in global climate agreements like the Paris Agreement. 
• Carbon Tax Framework: The tax will come into effect in 2028, requiring ships above 5,000 gross tonnage (which account for 85% of total CO2 emissions from international shipping) to either shift to cleaner fuel technologies or pay a fee ranging from USD 100 to USD 380 per tonne of CO₂ emitted, depending on emission thresholds. 
  • The tax is expected to generate up to USD 40 billion by 2030, which will be reinvested into decarbonising the maritime sector, with no provision for broader climate adaptation.  
• Indian Shipping Industry:  India is poised to be among the top 5 shipbuilding countries in the world by 2047. India’s fleet grew to 1,530 ships by 2023, ranking third globally in ship recycling.  
  • Major ports increased cargo capacity by 87% from 871.52 million tonnes in 2014-15 to 1,629.86 million tonnes in 2023-24.