Panama is becoming a joint sponsor and presenting to the International Maritime Organization (IMO) a proposal that would effectively cancel the carbon levy currently being applied in maritime shipping and weaken efforts to reduce greenhouse gas emissions, according to a leaked document reviewed by Guardian. The development underscores the fragility of the unified emissions pricing mechanism set to begin in 2028 across global container, tanker, and bulk carrier shipping. From a supply chain perspective, the IMO carbon levy represents a critical agenda item that will have long-term impacts on GHG fuel intensity, alternative bunker investment decisions, and cost items per port call. The proposal's slowdown of global maritime emissions policy may also delay investment prioritization planned across LNG, methanol, ammonia, and biofuel supply chains.
Panama's leaders are assessed to feel particularly vulnerable as one of the key nation-states in the maritime world. Hosting a canal used by approximately 5% of global shipping annually, the country is being put forward by Donald Trump as a possible annexation target along with Canada and Greenland. Guardian notes that Panama is smaller and more vulnerable than the other two countries, and its government is anxious about U.S. pressure. From a supply chain perspective, the mainline rotation utilizing the Panama Canal continues to be a critical node in planning for Asia-U.S. East Coast and transatlantic services. The reflections of the government's international policy positioning on canal operations and flag state roles are being closely monitored.
The IMO document dated February 20 is being presented by Liberia and jointly supported by Panama and Argentina, which hosts major ports. Many countries, including the U.K., continue to support the carbon levy, which will represent the first time international maritime emissions are being priced at the global level. In April 2025, United Nations member states approved the first draft of the IMO's Net-Zero Framework (NZF) policy after years of work. The NZF aimed to implement a global maritime emissions levy beginning in 2028, finance the transition of developing countries to low-carbon shipping, reduce international maritime emissions by at least 20% by 2030, 70% by 2040, and achieve net-zero emissions by 2050.
However, on October 17, 2025, all IMO members voted to delay the vote on the adoption of the NZF to the end of 2026. This pullback came one day after Donald Trump characterized the plan as a "global green scam tax on shipping" and threatened to impose port charges and sanctions against countries supporting the policy. From a supply chain perspective, this development directly impacts the green fleet transition investment timelines of major liner operators such as Maersk, Hapag-Lloyd, CMA CGM, and MSC. As a result, Panama's position shift emerges as a significant signal demonstrating that climate policy consensus at the IMO is being reshaped under geopolitical pressure.
Key Points:
1. Panama jointly supports the cancellation of the carbon levy at the IMO.
2. The proposal is submitted by Liberia with joint sponsorship by Panama and Argentina.
3. Panama Canal carries approximately 5% of global shipping volume.
4. The NZF aimed for 20% reduction by 2030, 70% by 2040, and net-zero by 2050.
5. The vote was delayed in October 2025 to the end of 2026.
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