The United States has successfully prevented the implementation of a global levy on shipping emissions as an international maritime conference concluded without enacting any regulations. The largest maritime nations had been discussing measures to transition the shipping industry away from fossil fuels to reduce emissions. However, President Donald Trump of the U.S., along with Saudi Arabia and other countries, opposed any worldwide taxation on shipping emissions.
The U.S. had warned of retaliation against nations supporting the levy. President Trump urged countries to vote against it at the International Maritime Organization (IMO) headquarters in London, emphasizing on his social media platform, Truth Social, that the U.S. would not tolerate such a global tax scheme.
The IMO, as the United Nations agency overseeing international shipping, faced a motion from Saudi Arabia to adjourn the meeting for a year, which was supported by more than half of the participating countries. Arsenio Dominguez, the IMO’s secretary general, expressed that nations now have a year to continue discussions and reach a consensus on various amendment aspects.
Ralph Regenvanu, the climate change minister of Vanuatu, criticized the decision as unacceptable due to the urgency posed by accelerating climate change. The proposed green shipping regulations would have marked the first instance of a global fee imposed on greenhouse gas emissions from ships, which predominantly utilize heavy fuel oil resulting in carbon dioxide and other pollutants.
The postponement has left the maritime sector in uncertainty, although it showcased a strong determination to enhance industry sustainability despite opposition from the U.S. Alison Shaw, the IMO manager at Transport & Environment, a Brussels-based environmental NGO, highlighted the sector’s commitment to cleaner practices.
Shipping emissions have climbed in the past decade, accounting for approximately three percent of global emissions, driven by increasing trade and the heavy fuel consumption of vessels for long-distance cargo transportation. In April, IMO member states had agreed on a regulatory framework with the aim of adopting the “Net-Zero Framework” at the London meeting.
Emma Fenton, senior director for climate diplomacy at a U.K.-based climate change non-profit, Opportunity Green, stressed the importance of multilateral cooperation to achieve global climate goals, cautioning that delays could undermine the framework’s objectives.
The proposed regulations aimed to introduce a marine fuel standard gradually reducing greenhouse gas emissions from shipping fuels. Additionally, a pricing system would have been established to levy fees for exceeding set emissions limits, constituting the first global tax on greenhouse gas emissions. The IMO’s target is for the shipping sector to achieve net-zero greenhouse gas emissions by around 2050, promoting the use of emissions-free or low-emission fuels.
Anaïs Rios, shipping policy officer for Seas At Risk, urged countries to return to the IMO with a resounding and unwavering yes vote to address the pressing environmental concerns. The urgency lies in safeguarding the planet and the future of the shipping industry.