The International Maritime Organization, or IMO, has delayed a landmark international agreement, which included a global carbon price and emissions-intensity standards for the shipping industry, for one year. This setback follows intense opposition and threats of retaliation from the United States.
Member countries of the IMO, the UN agency regulating global shipping, voted 57-49 to postpone the adoption of its net-zero framework until October 2026. The framework, which included a mandatory fuel standard and an economic measure (effectively a carbon price) for non-compliance, had been provisionally agreed upon by a majority of nations in April.
US blocked ‘global green new scam tax’:
The delay came after the US administration forcefully opposed the measure, denouncing it as an “illegitimate international tax” that would unfairly burden American consumers and the shipping industry. Before the vote, the US reportedly threatened tariffs, port levies, and visa restrictions on countries that supported the framework.
A successful motion to defer the talks for a year was put forward by Singapore and tabled for a vote by Saudi Arabia, one of the oil-producing nations that joined the US in opposition. The setback is a major blow to climate advocates and industry leaders who sought a clear global policy to spur investment in clean shipping fuels.
Global reactions:
“The United States will NOT stand for this Global Green New Scam Tax on Shipping and will not adhere to it in any way, shape or form,” noted Donald Trump, US President, on his social media platform.
“The delay leaves the shipping sector drifting 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 bullying,” said Alison Shaw, IMO Manager at Transport & Environment, an advocacy group.
“Geopolitics in the world right now makes it more difficult for us to make progress in certain topics,” said Arsenio Dominguez, IMO Secretary-General, in post-meeting remarks.
