124 - The EU's Shift on carbon levies for international shipping

A climate gamble or clever pivot?

Author

The Climate Mentor
March 31st, 2025 ā€¢ Estimated Reading Time: 4 minutes

Why did Europe blink first? ā™»ļø

Imagine this: the worldā€™s busiest shipping lanes, transporting 90% of global goods, finally start paying the environmental price for their emissions.

Sounds like a climate win, right?

That was the ideaā€”until the European Union recently backtracked on its plan to impose direct carbon levies on international shipping.

Why the sudden U-turn?

And what does this mean for climate policy, global trade, and green investors watching from the sidelines?

Keep readingā€”this move has more layers than a container ship in Rotterdam.

A line graph comparing proposed international shipping decarbonisation pathways from various entities (South Korea, Japan, US/UK/RMI/SBTi, and IMO) against business-as-usual (BAU) emissions projections. The y-axis shows COā‚‚e in gigatonnes (Gt) from 2005 to 2050. While BAU projections (red line) rise by 35% by 2050, targets from the US/UK group aim for a 96% reduction, South Korea and Japan target 50% reductions, and IMO aims for 50% as well. The 2018 baseline is used for all targets.

"Decarbonisation Pathways for International Shipping: Comparing Global Targets vs. Business-as-Usual

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