Our legal report written by Blánaid Sheeran, OG Policy Officer for Climate Diplomacy, investigates the legality of using revenues from a GHG pricing mechanism at the International Maritime Organization (IMO) for climate action outside of the international shipping sector. 

The report concludes that distributing revenues outside of the sector is not just legally permissible, but in line with IMO’s objectives. Furthermore, exclusive distribution of revenues within the sector could curtail the IMO’s advancement of a just and equitable transition.

The report finds that: 

• Distributing revenues outside of the international shipping sector is legally permissible under the IMO Convention and MARPOL. 

• Revenue distribution outside the sector could better support IMO objectives of controlling marine pollution than distribution within the sector. 

• Using revenues exclusively in the shipping sector may be at odds with the IMO’s commitment to a just and equitable transition. 

• Potential revenue uses outside the sector to advance a just and equitable transition could include non-maritime climate mitigation and adaptation, and financial assistance for developing countries. 

This report was published with the Sabin Center for Climate Change Law. 

Read full report below.