In a joint statement Aug. 12, the departments of State, Commerce, Energy, and Transportation announced that the U.S. “unequivocally rejects” a proposed international agreement on reducing global greenhouse gas emissions from the shipping sector.
This October members of the International Maritime Organization will consider formally adopting the “Net-Zero Framework” of fuel standards for ships. According to the IMO, this framework is “the first in the world to combine mandatory emissions limits and GHG pricing across an entire industry sector.”
Under this framework ships would have to reduce their annual GHG fuel intensity over time, with ships emitting above certain thresholds required to acquire remedial units to balance their deficit emissions and those using zero or near-zero GHG technologies eligible for financial rewards. These measures, set to enter into force in 2027, would be mandatory for oceangoing ships over 5,000 gross tonnage, which the IMO says emit 85 percent of the total CO2 emissions from international shipping.
However, the joint statement claims that this framework “is effectively a global carbon tax on Americans levied by an unaccountable UN organization” that “would conveniently benefit China by requiring the use of expensive fuels unavailable at global scale.” It would also “preclude the use of proven technologies that fuel global shipping fleets, including lower emissions options where U.S. industry leads such as liquified natural gas (LNG) and biofuels,” the statement asserts, and instead would require ships to “pay fees for failing to meet unattainable fuel standards and emissions targets.”
Stating that the Trump administration “will not tolerate any action that increases costs for our citizens, energy providers, shipping companies and their customers, or tourists,” the statement warns other IMO members that the U.S. “will look for their support against this action and not hesitate to retaliate or explore remedies for our citizens should this endeavor fail.” A Law360 article said retaliation could include “tariffs, visa restrictions or port levies – and potentially a combination of those measures.”
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