Representatives from over 100 nations convened in London recently to finalize a global carbon tax aimed at decreasing shipping emissions, a proposal that emerged after nearly a decade of negotiations. However, the initiative faced significant opposition from the United States, which lobbied for countries to reject the measure, threatening tariffs and sanctions for noncompliance. This included warnings about banning vessels from U.S. ports and imposing visa restrictions. Former President Trump referred to the initiative as a “global green new scam,” leading the U.S. to withdraw from discussions just prior to the proposed approval in April.
In a surprising turn, Saudi Arabia successfully pushed for a motion to delay the negotiations by a year at a critical voting moment, with support from the U.S. and Russia. Although the delay may seem temporary, it effectively undermines the initiative as the new timeline will need to be redefined. U.S. Secretary of State Marco Rubio hailed this outcome as a “huge win” for the Trump administration.
The shipping industry had shown strong support for the carbon tax, which promised to establish uniform global standards that are currently lacking. Thomas Kazakos, Secretary-General of the International Chamber of Shipping, expressed disappointment over the failure to reach an agreement, emphasizing that the industry requires certainty to invest appropriately.
As carbon dioxide levels soared to unprecedented highs in 2024, the consequences of inaction remain concerning. The proposed agreement mandated that shipowners transition to cleaner fuels by 2028 or face penalties. Currently, the shipping sector contributes approximately 3% to global carbon emissions, with projections indicating a potential rise of 10% to 150% by 2050. Nations are anticipated to reconvene in April to approach the plan anew, though a formal vote is unlikely at that time, leading to a complete renegotiation.
