The International Maritime Organization (IMO) has approved the world’s first global tax on greenhouse gas emissions from ships, setting a minimum fee of $100 per ton above certain thresholds, expected to raise $11–$13 billion annually starting in 2027.

The funds will support green shipping technology, low-emission vessels, and developing nations.

While praised as a historic step, critics argue the fee is too low to drive real emission cuts and may allow companies to simply pay to pollute.

The U.S. did not participate and opposes the plan, the Associated Press has reported.

A compromise was reached between a fixed levy and a credit system, though island nations criticized it as inadequate.

Written by B.C. Begley