US Intervention Delays Landmark Global Shipping Carbon Plan
- Sarah-Jayne Gratton
- 2 days ago
- 2 min read
A proposed landmark agreement to regulate and reduce greenhouse-gas emissions in the shipping industry has been significantly delayed, following concerted opposition from International Maritime Organization (IMO) member states led by the United States and Saudi Arabia.
The motion put forward by Saudi Arabia to postpone negotiations for one year secured a majority, effectively putting on hold the industry's first global carbon-pricing mechanism.
The deal—initially widely expected to be adopted—would have seen ship-owners above a certain size threshold subject to charges or levies for excess CO₂ emissions, reflecting a push to decarbonise the sector, which accounts for around 3 % of global greenhouse-gas emissions.
Key Points
The move to defer the agreement is widely seen as a diplomatic victory for the United States, which opposed the carbon-pricing proposal and labelled it a “green tax” on trade.
The deferral creates regulatory uncertainty for ship-operators, financial markets and technology investors in the shipping sector, who had anticipated the deal would provide a clear pathway to cleaner fuels and lower emissions.
While the delay does not officially cancel the agreement, it means the new rules—previously expected by 2027–28—will now likely miss that timeline, freeing ship-owners from binding obligations in the near term.
Global Implications
The shipping industry is integral to global trade, and the absence of regulatory clarity risks slowing investment in cleaner marine-fuels, retro-fitting of vessels and other decarbonisation efforts. For the UK and EU—both of which supported the scheme—the setback is politically sensitive, especially in the context of wider climate-action commitments.
Analysts point to the vote as a symptom of deeper geopolitical rifts. The U.S. government’s intervention illustrates how trade and climate agendas are increasingly intertwined. The deferment may also embolden other nations to resist similar mechanisms in other sectors.
What Happens Next
The IMO will reconvene negotiations, but the delay resets the timeframe. Observers expect that rules may now emerge closer to 2030 rather than 2027, and that any final agreement may include weaker targets or more flexible mechanisms than originally envisioned.
For the shipping industry, the message is clear: the pathway to net-zero is now more ambiguous than many companies had believed. Stakeholders will be watching closely for follow-through from member states and for signals of renewed momentum.