Bridging the agritech divide with advanced farming technology

 

Bridging the agritech divide with advanced farming technology

As the agriculture sector stands at a crossroads, scalable innovations like satellite-based sensing, region-specific tools, and inclusive pricing models offer a path toward a more sustainable and tech-enabled agricultural future

The farming industry is one of the significant pillars of the Indian economy, contributing a significant 16 per cent of India’s GDP and engaging more than half of the country’s population. However, to date, there has been a slow uptake of advanced technologies in agriculture. While several agritech start-ups have been launched and well-funded by investors, the connection between these ventures and farmers remains a challenge. One of the main problems that these start-ups have to contend with is that of high costs, which tend to be associated with technology.

There are many tools — including those used in precision farming, machinery such as weather stations, and sensors that can be applied to the soil — that hold the future of increased yields and sustainable farming. However, the cost associated with such technologies might be unaffordable for small farmers, who form the largest percentage of India’s farming community. Devices such as IoT sensors can cost hundreds of dollars per year, meaning that while a slight increase in yield for such farmers is hard to come by, the devices do not offer value for money.

More than 80 per cent of farmers in India are marginal farmers, cultivating landholdings of less than five acres. These marginal lands are often fragmented into multiple smaller plots, allowing farmers to grow different crops on the same holding.

This fragmentation poses a challenge for agritech solutions designed for large-scale farming. However, satellite-based data solutions can bridge this gap by providing precise, farm-specific insights even for farms having an area of only a quarter of an acre (about 10,000 square feet), enabling even smallholder farmers to optimise their crop management and improve productivity.

The policies of the Indian agricultural sector fluctuate, and some crucial aspects like water — which is a basic necessity for agriculture — are controlled by the state governemnt.

While such interventions as subsidies and grants are useful, they have led to a situation where agritech remains a state-subsidised model rather than a market-driven one.

Many new agritechs have come to depend on these Governemnt partnerships for revenue instead of selling directly to farmers, which has impacted the growth and sustainability of most of them in the private market.

Among the challenges that have limited the embrace of agritech is ignorance among farmers.

It is essential to understand that large-scale farmers might invest time and resources to evaluate and consider adopting new technologies, while smallholder farmers are more likely to make decisions by word of mouth or based on regular practices.

This is mainly due to the poor development of facilities and capacity-building to form the basis for adopting innovations in farming technologies.

Cost-Effective Solutions

The first area of intervention for farmer uptake can be increased through improved adoption of technologies that are cheaper to develop. Although IoT-based sensors are costly, satellite remote sensing is feasible.

While IoT sensors can cost several hundred dollars and give localised information, satellite technology offers information for the whole farm area at a considerably lower cost — usually less than 5 per cent of the price of sensors. Satellite remote sensing, combined with artificial intelligence and machine learning, can be used to monitor soil nutrient levels, manage pest and disease risks, and support irrigation water management across large areas of farmland.

 These solutions are especially practical and accessible for smallholder farmers. In this way, satellite-based solutions represent a constrained set of technological tools whereby agritech companies can propose complete and high-quality products and services at more competitive prices.

localised Solutions

Given the highly heterogeneous climate of the country and the different farming practices followed across regions, it can be said that a market solution carved in one casting will not fit this agritech market. Start-ups must provide region-specific products.

They can, therefore, apply different ways of ensuring their solution reaches farms in varying regions so that farmers can adopt it.

Pricing Models

Long-term, technology must be accessible to small and marginal farmers and useful even for field crops like wheat —especially in terms of the ultimate cost of the technology delivered to the farm. A scholar cited that the cost of any new technology farmers must consider has to be less than or equal to 10 per cent of the total farming cost. This is crucial for adoption.

Affordability is another value that agritech start-ups should embrace, enabling them to offer their products at a cheaper cost and within reach of many farmers. Other revenue models that can be used include fee-for-service or usage plans in which the farmer pays only for what is used.

Fostering Education

Guaranteeing extensive use of such technology — even if it is cheap— requires more education and support. Agritech companies must incorporate education campaigns as a key means of informing farmers about the benefits of using these products.

This might be achievable through human capital development programmes, farmer organisations or local associations. This paper contends that hands-on training and demonstrations enable farmers to overcome hesitance stemming from a lack of familiarity. Current strategies point to the need to make technology simple and easy to use to minimise the chances of farmers being unable to adopt it on the farm.

Government and Private Sector Collaboration

Although major funding is currently being attracted to agritech start-ups via governemnt grants, the long-term model will require the involvement of both public and private entities.

This implies a need for policies that encourage agritech growth while avoiding excessive dependence on state subsidies. This includes strengthening policy content, creating private-sector incentives, and guaranteeing support for farmers transitioning to better technologies. Scaling efforts via public–private partnerships may help deliver appropriate support to farmers.

Final Thoughts

The Indian agritech industry is at a turning point. Although there is hope in the power of technology to transform agriculture, challenges such as cost, accessibility and uptake remain significant. High-end technologies like IoT sensors and UAVs are often too expensive for small and marginal farmers.

 However, affordable and scalable solutions — such as satellite remote sensing, regionalised products, optional pricing structures and farmers’ sensitisation —are available.   When combined with agricultural expertise and AI/ML, satellite remote sensing emerges as a practical and inclusive solution, making advanced technology accessible even to small and marginal farmers.

 India, being one of the top agricultural producers globally, has a wealth of insights from its diverse farming landscape. These learnings not only improve Indian agriculture but are also leveraged globally to assist small and marginal farmers elsewhere.

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How engineering innovations are driving a sustainable future

 

How engineering innovations are driving a sustainable future

India’s rapid growth in renewable energy, sustainable manufacturing, and smart infrastructure is positioning the nation as a global leader in clean and resilient development.

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India has made notable strides in the renewable energy sector in the last decade. According to a report by the Ministry of New and Renewable Energy, the installed capacity under the Renewable Energy (RE) sector, including large hydro, rose from 81.22 GW in 2014-15 to 190.57 GW by 2023-24, marking a remarkable growth of 134.63% during this period.

Furthermore, the report highlights a significant global shift towards clean energy. As of December 31, 2023, the overall installed capacity under the RE and non-RE sectors globally stood at 8987.26 GW, with 3864.52 GW installed under the RE sector.

In addition to renewable energy, eco-friendly manufacturing processes are also gaining momentum in India. One of the critical challenges in urban areas is the treatment of wastewater.

In this regard, The Energy and Resources Institute (TERI's) Advanced Oxidation Technology (TADOX) is effectively treating textile and dyeing wastewater, accomplishing zero liquid discharge and enhancing water reuse. Such technologies are key in addressing the environmental challenges posed by industrial activities and promoting sustainable manufacturing practices.

Additionally, according to TERI, nearly 66% of the sewage generated in cities remains untreated, leading to environmental pollution and contamination of freshwater sources.
The high infrastructure expense of centralised treatment systems is a considerable barrier to effective wastewater management. 

To address this issue, innovative solutions have been developed, such as ceramic membranes from waste fly-ash for use in Membrane Bioreactors (MBRs). These solutions provide high-quality treated water at an affordable cost.

Moreover, smart infrastructure is redefining daily activities with the integration of cutting-edge technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and advanced data analytics. Together, these innovations are remarkably enhancing the quality of urban life, making cities smarter and more responsive to the needs of their residents.

These technological advancements are just the tip of the iceberg of what the world is witnessing. They are not only transforming industries but also paving the way for a greener and more resilient future.

The role of educational institutions

A strong foundation in technical education is essential for driving this transformation. Leading technology education institutions in India, like Birla Institute of Technology (BIT) Mesra are taking the lead in fostering innovation and research in renewable energy, smart infrastructure, and environment-friendly manufacturing. 

By empowering students with contemporary skills and knowledge, these institutions are preparing the next generation of engineers and scientists to address the sustainability challenges of the future. Moreover, strategic alliances between academia, industry, and government are essential for materialising research into viable solutions.

Collaborative projects with local industries and communities promote a culture of innovation, encouraging students to design solutions that address real environmental issues.
This proactive approach not only enhances students' employability but also contributes to the broader goal of sustainable development, as fresh ideas and creative solutions emerge from young minds. 

Furthermore, this will create a conducive ecosystem for scaling up successful innovations to achieve environmental and economic advantages.

India’s advancements in renewable energy, smart infrastructure, and eco-friendly manufacturing are setting a benchmark for other nations to follow. With its robust technological framework and commitment to sustainable development, the country is well-positioned to emerge as a leader in the global sustainability landscape. 

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UPI remains GST-free: Centre clarifies no tax on digital payments

The CBIC stated that the Government planning to impose GST on UPI transactions exceeding Rs 2,000 are entirely unfounded and inaccurate. At present, there is no official proposal in this regard.

Digital transactions through UPI touched a record high of Rs 24.77 lakh crore in March 2025.

Amid circulating claims on social media, the Centre has firmly denied reports that it is planning to impose GST on UPI transactions over Rs 2,000. The Ministry has clarified that such claims are completely false, misleading, and baseless.

There is currently a lot of discussion surrounding the imposition of GST on UPI transactions exceeding Rs 2,000. This news has captured the attention of various UPI user groups, including individual users and small business owners, causing significant speculation within the community. 

Following the buzz on social media, the Central Board of Indirect Taxes & Customs took to the social media platform X explaining the government's stand on charging GST on digital payments. It said UPI has revolutionised the way people in rural communities can make payments and receive funds, eliminating the need for physical cash.

"The claims that the Government is considering levying GST on UPI transactions over ₹2,000 are completely false, misleading, and without any basis. Currently, there is no such proposal before the government. GST is levied on charges, such as the Merchant Discount Rate (MDR), relating to payments made using certain instruments. Effective January 2020, the CBDT has removed the MDR on Person-to-Merchant (P2M) UPI transactions through the Gazette Notification dated 30th December 2019. Since currently no MDR is charged on UPI transactions, there is consequently no GST applicable to these transactions," the post read.

Here’s what you need to know:

No GST on UPI: There is no proposal under consideration to levy GST on UPI payments.

No MDR = No GST: Since Merchant Discount Rate (MDR) was removed for Person-to-Merchant (P2M) UPI payments in January 2020, GST is not applicable on such transactions.

The CBDT notification dated 30th December 2019 officially abolished MDR for P2M UPI payments.

Government Is Promoting, Not Taxing UPI

Contrary to the false claims, the government has been actively incentivising digital payments, especially low-value UPI transactions. To support this, a UPI Incentive Scheme has been in place since FY 2021-22:FY 2021-22: Rs 1,389 crore

FY 2022-23: Rs 2,210 crore

FY 2023-24: Rs 3,631 crore

These payouts help cover transaction costs for merchants, encouraging wider adoption and innovation in digital payments.

UPI in India

India's UPI has emerged as a global leader in real-time digital payments, setting new benchmarks in scale, adoption, and impact.

According to data from the National Payments Corporation of India (NPCI), transactions through UPI reached a new peak in March, totaling Rs 24.77 lakh crore. This marks a 12.7% increase from the previous month's total of Rs 21.96 lakh crore. The NPCI also reported that the value of UPI transactions in March 2025 was significantly higher than in the same month last year, with a total of Rs 24.77 lakh crore compared to Rs 19.78 lakh crore. In addition, UPI transactions in March 2025 saw a 25% increase in value and a 36% growth in volume compared to the previous year.

According to the ACI Worldwide Report 2024, India accounted for a staggering 49% of all global real-time transactions in 2023, far surpassing other nations and solidifying its position as the world’s most advanced real-time payments ecosystem.

The growth in transaction value is equally impressive. UPI payments surged from Rs 21.3 lakh crore in FY 2019-20 to Rs 260.56 lakh crore by FY 2024-25, highlighting its rapid integration into daily life. Notably, Person-to-Merchant (P2M) payments reached Rs 59.3 lakh crore, indicating increasing acceptance by small businesses and retailers, as well as rising consumer trust in cashless payments.

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Could CT scans be fuelling a future rise in cancer cases, as a new study suggests?

CT scans are a vital part of modern medicine. Found in every hospital and many clinics, they give doctors a fast and detailed look inside the body – helping to diagnose everything from cancer and strokes to internal injuries. But a new study suggests there may be a hidden cost to our growing reliance on this technology.

The study, published in Jama Internal Medicine, warns that CT scans performed in the US in 2023 alone could eventually lead to over 100,000 extra cancer cases. If the current rate of scanning continues, the researchers say CT scans could be responsible for around 5% of all new cancers diagnosed each year.

That figure has raised concerns. Especially when you consider that the number of CT scans done in the US has jumped by 30% in just over a decade. In 2023, there were an estimated 93 million CT exams carried out on 62 million people.

The risk from a single scan is low – but not zero. And the younger the patient, the greater the risk. Children and teenagers are especially vulnerable because their bodies are still developing, and any damage caused by ionising radiation may not show up until many years later.

That said, over 90% of CT scans are performed on adults, so it’s this group that faces the largest overall impact. The most common cancers linked to CT exposure are lung, colon, bladder and leukaemia. For women, breast cancer is also a significant concern.

CT scans are associated with lung, colon, bladder, leukaemia, breast and other cancers. Canon2260 / Alamy Stock Photo

What makes this latest estimate so striking is how much it has grown. In 2009, a similar analysis projected around 29,000 future cancers linked to CT scans. The new number is over three times higher – not just because of more scans, but because newer research allows for a more detailed analysis of radiation exposure to specific organs.

Understand how AI is changing society

The study also makes an eye-catching comparison: if things stay as they are, CT-related cancers could match the number of cancers caused by alcohol or excess weight – two well-known risk factors.

Not all scans carry the same level of risk. In adults, scans of the abdomen and pelvis are thought to contribute the most to future cancer cases. In children, it’s head CTs that pose the biggest concern – especially for babies under the age of one.

Often life-saving

Despite all this, doctors stress that CT scans are often life-saving and remain essential in many cases. They help catch conditions early, guide treatment and are crucial in emergencies. The challenge is making sure they’re only used when really needed.

Newer technologies could help reduce the risk. Photon-counting CT scanners, for example, deliver lower doses of radiation, and MRI scans don’t use radiation at all. The researchers suggest that better use of diagnostic checklists could also help doctors decide when a scan is necessary, and when a safer alternative like MRI or ultrasound might do the job.

It’s worth noting that this study doesn’t prove CT scans cause cancer in individual people. The estimates are based on “risk models” – not direct evidence. In fact, the American College of Radiology points out that no study has yet linked CT scans directly to cancer in humans, even after multiple scans.

Still, the idea that radiation can cause cancer isn’t new. It’s scientifically sound. And with the huge number of scans being done, even small risks can add up.

CT scans save lives, but they’re not risk-free. As medical technology evolves, so too should the way we use it. By cutting down on unnecessary scans, using safer alternatives where possible, and keeping radiation doses as low as practical, we can ensure CT scans continue to help more than they harm.

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Delhi School of Economics paper finds stark under-reporting of income by India’s richest

The study aligns with global concerns over under-taxed wealth and failure to capture the real earnings

Representational image (photo: Nasir Kachroo/NurPhoto via Getty Images)

A recent academic paper by Ram Singh, director of the Delhi School of Economics, has reignited the global debate on income inequality by offering fresh evidence that India’s wealthiest households may be significantly under-reporting their incomes — an issue that echoes concerns raised at the 2024 G20 summit and in international assessments such as those by French economist Gabriel Zucman and Oxfam.

Published in the Review of Income and Wealth in May 2025, Singh’s paper analyses national accounts, income tax data, and asset disclosures from Lok Sabha MPs. The Hindu reported that Singh's research reveals that “the wealthier a household is, the smaller the income it reports relative to its wealth.”

In other words, those at the very top of India’s economic pyramid appear to be disclosing disproportionately lower incomes in comparison to their substantial asset holdings — an indicator that income inequality in India may be far more pronounced than previously believed.

The paper quantifies this mismatch, stating that a 1 per cent rise in wealth corresponds to a more than 0.6 per cent drop in the reported income-to-wealth ratio. This trend holds across all forms of declared income, from taxable to capital gains.

Among India’s richest, including families listed in Forbes' 2021 rankings, reported income amounts to just 1/12th of their total wealth — a statistic that, according to Singh, suggests deliberate income concealment to minimise tax liability.

These findings offer new context to the 2024 presentation by French economist Gabriel Zucman to G20 finance ministers in Brazil, where he argued that traditional income taxation structures fail to capture the real earnings of the ultra-rich.

Zucman’s recommendation — a global presumptive income tax based on wealth — stems from the understanding that the richest individuals derive most of their gains not from salaries but from capital assets such as equity, real estate, and private companies.

In his proposal, a 2 per cent tax on wealth equates to a 33 per cent tax on an assumed 6 per cent return, effectively plugging gaps left by income-based taxation.

Zucman’s model aims to counteract the growing inefficacy of conventional income taxes in the face of wealth hoarding and aggressive tax planning by high-net-worth individuals.

His call for an international minimum tax on billionaires would counter capital flight and render tax avoidance via relocation less viable — a concern that has historically stymied wealth tax discussions.

India’s case seems particularly stark. Singh’s paper points out anomalies such as rental yields being under-reported, especially from agricultural land — an area often used to claim tax-free income.

Despite the expectation that rental income would outperform equity dividends, the data show otherwise, hinting at tax evasion through misreporting or exploiting exemptions on farm income.

The affidavits of election candidates showed similar patterns, with one notable deviation: MPs with higher chances of winning, and thus greater public and media scrutiny, tended to disclose income figures more faithfully.

These domestic findings correspond with global observations. Oxfam’s 2024 report highlights that the world’s richest pay strikingly little tax. Elon Musk’s effective tax rate stood at 3.2 per cent, while Jeff Bezos paid under 1 per cent, the report claims. In contrast, ordinary workers in developing countries, like Aber Christine — a Ugandan market vendor — paid up to 40 per cent of her income in taxes.

India’s most prominent tycoon, Mukesh Ambani, has long been emblematic of this disparity. Though the chairman of Reliance Industries has ranked among India’s wealthiest for over a decade, he has never featured in the top 100 income taxpayers.

His self-imposed reduction in annual compensation — from Rs 37 crore to Rs 15 crore — reflects a global trend: for the ultra-rich, income is no longer the main avenue for wealth accumulation. Their wealth grows through ownership structures, passive gains, and tax-exempt avenues.

While Singh’s study does not propose specific policy remedies, it starkly underscores the inadequacy of India's current tax structure in capturing and redistributing wealth.

Previous research by the World Inequality Lab pegged the top 1 per cent of Indians as holding 40.1 per cent of wealth and earning 22.6 per cent of the country’s income — figures that Singh argues may in fact understate the inequality due to income under-reporting.

The convergence of Singh’s findings with Zucman’s G20 proposal and Oxfam’s advocacy signals a growing global consensus: taxing income alone is no longer sufficient. As the wealth gap deepens and regressive taxation structures persist, international cooperation — and bold domestic reform — may be the only path to a more equitable economic future.

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All about the first global tax on greenhouse gases

SV Krishna Chaitanya

On Friday, the International Maritime Organisation (IMO) has finalised a $100 per tonne carbon tax on ship emissions, set to take effect in 2028. This levy, applied to nations failing to meet contributions to the IMO’s net-zero fund or compliance targets, marks the first global tax on greenhouse gas (GHG) emissions.

Coupled with a new marine fuel standard to phase in cleaner alternatives, the decision aims to curb the maritime sector’s 3% share of global emissions, as reported by the United Nations. Yet, with the United States absent from the talks and environmentalists divided, questions linger: Is this a transformative leap toward the IMO’s net-zero 2050 goal, or a compromise that falls short of the climate crisis’s demands?

Maritime shipping, the backbone of global trade, moves roughly 12 billion tons of cargo annually, as per United Nations Trade and Development (UNCTAD) 2023 report. Despite a 0.4% dip in seaborne trade in 2022, the sector is projected to grow 2.1–2.2% yearly through 2028, driven by rebounding containerized trade (up over 3% annually from 2024) and surging oil and gas shipments (6% and 4.6% growth in 2022). This growth fuels a troubling trend: shipping emissions have climbed over the past decade, reaching about 1 billion metric tonnes of CO2 equivalent annually—3% of global GHG output. Larger vessels, carrying more cargo per trip, burn immense amounts of heavy fuel oil, with Panama, Liberia, and the Marshall Islands—holding over a third of global tonnage—leading the emissions tally.

The IMO’s 2023 Revised GHG Strategy sets ambitious targets: a 20–30% emissions cut by 2030 and net-zero by 2050, relative to 2008 levels. Yet, without intervention, emissions could rise further. UNCTAD notes that geopolitical shifts, like the Ukraine war, have rerouted oil and grain shipments, boosting ton-miles (cargo distance traveled) beyond tonnage growth, with oil cargo distances hitting long-term highs in 2023.

The $100 per tonne tax, finalised by the IMO’s Marine Environment Protection Committee (MEPC) after a week of heated debate, targets ships from nations not meeting net-zero fund contributions or emissions compliance. It’s paired with a fuel standard to promote zero- or near-zero-emission fuels like hydrogen, methanol, and ammonia. The tax aims to incentivise cleaner operations and fund decarbonization, particularly for vulnerable economies. UNCTAD estimates that decarbonizing shipping requires $8–28 billion annually for vessels and $28–90 billion for fuel infrastructure, potentially raising fuel costs 70–100%. A levy could generate billions to offset these costs, supporting port upgrades, climate adaptation, and alternative fuel bunkering.

However, the tax’s design sparked fierce debate. Over 60 countries, led by Pacific island nations like the Marshall Islands, pushed for a flat levy per metric ton of CO2. These nations, facing existential threats from rising seas, argued that a simple tax ensures fairness and drives rapid fuel shifts. The International Chamber of Shipping, representing 80% of the global fleet, backed this approach, with Secretary-General Guy Platten calling it “pragmatic.” Conversely, maritime powers—China, Brazil, Saudi Arabia, and South Africa—favored a credit trading model, where ships earn credits for low emissions and buy them to offset excess. Critics, including Marshall Islands Ambassador Albon Ishoda, warned that credits let wealthier operators “buy compliance,” undermining climate goals. The final agreement blends both models, risking diluted impact but securing broader buy-in.

The economic stakes are high, especially for small island developing states (SIDS) and least developed countries (LDCs). UNCTAD’s 2021 assessment projected a 2.7% rise in maritime logistics costs by 2030 under existing IMO measures like the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII), with SIDS and LDCs facing GDP declines up to 0.08%—equivalent to $80 billion globally based on 2022’s $104 trillion GDP. The new tax could exacerbate these costs unless revenues are equitably redistributed. In 2022, two-thirds of the global fleet met CII A–C ratings for low carbon intensity, but stricter standards could see this drop to 49% by 2026, per UNCTAD, hitting smaller operators hardest.

For SIDS, the stakes are existential. The Marshall Islands, a top ship registry, exemplifies the tension: its fleet drives global emissions, yet its people face climate-driven submersion. The tax could fund adaptation—think seawalls or renewable bunkering ports—but environmentalists like Emma Fenton of Opportunity Green argue it won’t raise enough to support vulnerable nations’ transitions. UNCTAD emphasizes that a universal framework is critical to avoid a “two-speed decarbonization,” where wealthier fleets adopt green tech while others lag.

The tax is one piece of a complex puzzle. The global fleet—105,493 vessels as of January 2023—averages 22.2 years old, up two years from a decade ago, per UNCTAD. Aging ships resist retrofitting for alternative fuels, which face high costs and scant bunkering infrastructure. In 2022, one-third of ordered tonnage could use alternative fuels, but scaling requires overhauling fuel chains. Initiatives like the COP26 Clydebank Declaration’s 21 green shipping corridors aim to bridge this, but SIDS and LDCs risk exclusion without targeted investment.

Freight market volatility adds pressure. Rates crashed 80% from January 2022’s 5,067-point Shanghai Containerised Freight Index peak to 967 points by June 2023, squeezing carriers’ green tech budgets. Overcapacity, with container fleet growth at 3.9% in 2022, prompts cost-cutting like slower steaming, which cuts emissions but delays trade. Digital tools, like the IMO’s 2024 Maritime Electronic Single Window, could streamline ports, but new rules like the EU’s Carbon Border Adjustment Mechanism may add red tape.

The $100 per tonne tax is a milestone—the first global GHG levy—but its hybrid design and U.S. opt-out raise doubts. 

UNCTAD projects trade growth will outpace decarbonisation without bolder action. By 2028, the tax could generate billions, but only robust enforcement and reinvestment in SIDS and LDCs will ensure equity. Alternative fuels need cheaper production and wider bunkering; aging fleets need incentives to retrofit or retire. The IMO’s net-zero 2050 target demands not just taxes but a reimagined maritime ecosystem.

The carbon tax will generate $30–40 billion in revenues by 2030 and roughly $10 billion annually. 

The agreement is projected to deliver at best 10% absolute emissions reduction in the shipping sector by 2030 - far short of the IMO’s own targets set in their 2023 revised strategy, which calls for at least a 20% cut by 2030, with a stretch goal of 30%. The funds will be ringfenced for decarbonising the maritime sector alone and not go towards climate financing for developing countries. Starting in 2028, ships will be required either to transition to lower-carbon fuel mixes or pay for the excess emissions they generate. Vessels that continue to burn conventional fossil fuels will face a $380 per tonne fee on the most intensive portion of their emissions, and $100 per tonne on remaining emissions above a certain threshold.

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