Cruise companies are preparing for the possibility of increased costs due to a green-energy plan from the International Maritime Organization (IMO), the United Nations shipping agency.
The IMO's Net Zero Framework aims to push global shipping to net-zero emissions by 2050, but its implementation has been delayed until October.
Under the framework, vessels that exceed emissions-intensity limits will face a carbon tax, with smaller violations costing $100 per metric ton and larger ones costing $380 per metric ton.
The revenue generated by the tax will fund the IMO's Net-Zero Fund, which will support U.N. climate-related goals.
However, the plan has faced opposition from 16 IMO member states, including the U.S., which has threatened retaliatory sanctions and visa restrictions.
Even a scaled-back version of the plan could harm cruise companies, which have spent billions building green-friendly vessels.
The industry is now facing a dilemma: whether to build expensive fuel-ready ships or proceed with standard models and hope the IMO abandons the effort.
