International deal to cut shipping emissions falters under U.S. pressure

The United States succeeded in blocking a global levy on shipping emissions as an international maritime meeting was postponed on Friday without rules being adopted.

The world's largest shipping nations have been discussing regulations that would allow the shipping industry to divest from fossil fuels and cut emissions. But US President Donald Trump, Saudi Arabia and other countries have vowed to fight any global tax on shipping emissions.

The US has threatened to retaliate if countries support them. Trump called on countries to vote “no” at the International Maritime Organization (IMO) headquarters in London, posting on his social media site Truth Social on Thursday that “The United States will not support this global green scam shipping tax.”

IMO is the UN agency that regulates international shipping.

Saudi Arabia called for a vote to postpone the meeting by a year. More than half of the countries agreed.

“You now have one year and you will continue to work on some aspects of these amendments,” IMO Secretary-General Arsenio Domínguez said in his closing remarks. “You have one year to negotiate and reach a consensus.”

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Some companies have found a unique way to reduce their carbon emissions by importing products via sailing cargo ship, one of which recently stopped in Quebec.

What does this mean for climate change?

Ralph Regenvanu, climate change minister for the Pacific island nation of Vanuatu, said the decision was unacceptable “given the urgency we face in light of accelerating climate change.”

If green shipping rules were passed, it would be the first time there would be a global charge on planet-warming greenhouse gas emissions. Most ships today run on heavy fuel oil, which releases carbon dioxide and other pollutants when burned.

“Due to this delay, the shipping sector is adrift in uncertainty. But this week has also shown that there is a clear desire to clean up the shipping industry, even in the face of US intimidation,” said Alison Shaw, IMO manager at Transport & Environment, a Brussels-based environmental NGO.

Emissions from shipping have risen over the past decade to about three percent of the global total as trade has grown and ships use huge amounts of fossil fuels to transport goods over long distances.

In April, IMO member countries agreed on the content of the regulatory frameworkwith a view to adopting the “Net-Zero Framework” at a meeting in London this week.

The adoption of the rules was intended to demonstrate how effective multilateral cooperation can make real progress towards global climate goals, said Emma Fenton, senior director of climate diplomacy at UK climate change non-profit Opportunity Green. According to them, delaying this process risks undermining the structure's ambitions.

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What would the rules do?

These rules will establish a marine fuel standard that will, over time, reduce the amount of greenhouse gas emissions allowed from marine fuel. The rules would also establish a pricing system that would charge a fee for every ton of greenhouse gases emitted by ships above permissible limits, effectively the first global tax on greenhouse gas emissions.

IMO, which regulates international transport, have set a target for the sector to achieve net-zero greenhouse gas emissions by around 2050. and committed to ensuring greater use of zero- or near-zero-emission fuels.

“What is important now is for countries to rise up and return to the IMO with a louder, more confident voice that cannot be silenced,” said Anaïs Rios, shipping policy specialist at Seas At Risk. “The planet and the future of shipping must waste no time.”

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