The United States successfully prevented the implementation of a global levy on shipping emissions as an international maritime meeting concluded without enacting regulations. Major maritime nations had been considering measures to transition the shipping industry from fossil fuels to reduce emissions. However, President Donald Trump, along with Saudi Arabia and other countries, opposed any international tax on shipping emissions.
The U.S. had warned of retaliation against nations supporting the levy. Trump encouraged countries to vote against it at the International Maritime Organization (IMO) headquarters in London, stating on his social media platform, Truth Social, that the U.S. would not tolerate a global tax on shipping.
The IMO, a United Nations agency overseeing international shipping, faced a call from Saudi Arabia to adjourn the meeting for a year, which was supported by more than half of the countries present. “You have one year to continue working on various aspects of these amendments,” stated Arsenio Dominguez, IMO Secretary-General, in closing the meeting.
Ralph Regenvanu, climate change minister of Vanuatu, expressed dissatisfaction with the decision, citing the urgent need to address climate change. If the proposed green shipping regulations had been adopted, it would have marked the first instance of a global fee imposed on greenhouse gas emissions from shipping vessels.
Shipping emissions have increased in recent years, accounting for about three percent of global emissions due to expanding trade and the heavy use of fossil fuels by ships. The delay in adopting the regulations has left the shipping industry in uncertainty, although there is a strong push to improve environmental standards despite opposition from the U.S.
The regulations aimed to establish a marine fuel standard to reduce greenhouse gas emissions gradually and introduce a pricing system imposing fees on exceeding emission limits, essentially creating a global tax on greenhouse gas emissions. The IMO has set a target for the sector to achieve net-zero emissions by 2050 and promote the use of low or zero-emission fuels.
Advocates stress the importance of countries reaffirming their commitment to the IMO’s goals and pushing for stronger support to combat climate change in the shipping industry.