UN Shipping Agency Postpones Carbon Price Decision by One Year

A significant decision was made on Friday at the United Nations shipping agency, where a majority of member countries voted to delay by one year the implementation of a global carbon price for international shipping. This postponement follows intense discussions that failed to reach a consensus on emissions reduction measures, largely under the influence of U.S. pressure.

The delay is a setback for the European Union and other nations, including Brazil, which have actively advocated for a greener shipping industry and the establishment of a pricing mechanism to support decarbonisation efforts. The United States and Saudi Arabia, both major oil producers, have expressed strong opposition to the carbon pricing initiative throughout the negotiations held in London at the International Maritime Organization (IMO).

During the discussions, Saudi Arabia proposed a motion to defer the decision for one year, which passed with a simple majority of 57 votes, while 49 countries opposed the move and sought to advance the agreement. U.S. President Donald Trump urged IMO member states to reject the proposal, stating on his Truth Social platform that the U.S. would “not stand for this global green new scam tax on shipping and will not adhere to it in any way, shape or form.”

The outcome leaves the shipping sector in a state of uncertainty, according to Faig Abbasov, director of shipping at the environmental group Transport & Environment. Abbasov remarked, “The delay leaves the shipping sector drifting in uncertainty.”

In April 2023, the IMO had reached a preliminary agreement to charge the global shipping industry for emissions, a move that came after the U.S. withdrew from related discussions. Following this withdrawal, Washington threatened to impose visa restrictions and sanctions on countries that supported the carbon pricing initiative.

The IMO, which includes 176 member countries, is tasked with regulating international shipping’s safety, security, and pollution prevention. In his closing remarks, IMO Secretary-General Arsenio Dominguez cautioned delegates, saying, “Let’s not celebrate. There are concerns we need to address.”

Currently, international shipping is responsible for nearly 3 percent of global carbon dioxide emissions. With approximately 90 percent of the world’s trade conducted via sea transport, experts warn that emissions are projected to escalate without an effective agreement in place.