IMO Delays Carbon Tax Decision for Shipping Until 2026
The Hague, Thursday, 30 October 2025.
The International Maritime Organization postponed its carbon tax decision, impacting the transition to alternative fuels like hydrogen. This delay highlights tensions between environmental targets and economic concerns.
Economic Concerns and Environmental Goals
The decision to delay the International Maritime Organization’s (IMO) carbon tax until 2026 underscores the tension between achieving environmental goals and addressing economic concerns. The vote, which took place on October 17, 2025, ended with a narrow margin of 57 to 49, reflecting the division among member states. The United States, Saudi Arabia, and China were among the countries that expressed significant concerns about the financial implications such a tax could impose on the shipping industry, citing potential impacts on competitiveness and costs [1][2].
Impact on Alternative Fuels
The postponement of the carbon tax may delay the shipping industry’s transition to alternative fuels, including hydrogen, which are vital for reducing emissions. The FuelEU Maritime Regulation, enforced on January 1, 2025, continues to press for declining greenhouse-gas intensity targets for ships calling at EU ports, creating a potential regulatory mismatch with global standards. This disparity could lead to fragmented regulations, causing uncertainty within the industry about future investments in sustainable fuel technologies [1][3].
Industry Response to the Decision
Despite the setback, key industry figures remain optimistic about the ongoing energy transition. At the Global Maritime Forum’s annual summit in Antwerp, leaders like Alexander Saverys of CMB.TECH and Jacques Vandermeiren of the Port of Antwerp-Bruges emphasized the irreversible nature of the decarbonization process. They reiterated that while the delay presents challenges, it also offers an opportunity for stakeholders to align more closely on the path forward [1].
Looking Ahead
The IMO’s decision to adjourn discussions until 2026 leaves room for further negotiations and consensus-building among member states. In the meantime, the Intersessional Working Group on the Reduction on Greenhouse Gas Emissions from Ships will continue developing guidelines for implementing the Net Zero Framework. This ongoing work aims to ensure that once the framework is adopted, it will be robust enough to meet global emission reduction targets while accommodating economic realities [4][5].