The International Maritime Organization has postponed for a year an effort to advance an international agreement on reducing global greenhouse gas emissions from the shipping sector. The Trump administration had expressed strong opposition to the pact and threatened retaliatory action if it was approved.
IMO members met this month to vote on whether to formally adopt the “Net-Zero Framework” of fuel standards for ships. 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, which had been expected to enter into force in 2027, would be mandatory for oceangoing ships over 5,000 gross tonnage, which the IMO said emit 85 percent of the total CO2 emissions from international shipping.
However, earlier this year the Trump administration claimed 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” and instead would require ships to “pay fees for failing to meet unattainable fuel standards and emissions targets.”
At that time the White House warned 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.” Such retaliation could include tariffs, visa restrictions, and/or port levies.
While the IMO did convene a meeting this month to consider adopting the agreement, on Oct. 17 a majority of members at that meeting voted to adjourn it and reconvene in 12 months. In the meantime, the IMO said, member states “will continue to work towards consensus” on the agreement.
Copyright © 2025 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.