Iraq recently joined a group of oil-producing countries opposing proposed changes to the International Maritime Organization’s (IMO) emissions reduction framework, amid growing disagreements over shipping regulation.
According to a report released by S&P Global on Wednesday, Iraq, Saudi Arabia, the UAE, Kuwait, and Russia have all called for the implementation of a technologically neutral framework that does not involve centralized carbon pricing.
These countries advocated for a worldwide agreement that considers varying capabilities of different countries.
The position of these countries comes as the IMO aims to enact measures to reduce marine emissions and impose penalties on greenhouse gases beginning in 2028.
These initiatives are experiencing growing criticism, notably from the United States, which has called for the full repeal of the present system.
Other nations, on the other hand, prefer sticking to the present standards or making only minor changes, warning that resuming discussions might delay meeting emissions reduction objectives, which include a 30 percent reduction by 2030.
According to shipping industry experts, as the imposition of fees on emissions could accelerate the transition to cleaner fuels, it may also raise shipping costs and impact global trade, particularly for countries that rely on energy exports.
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