US Exits Critical Global Talks to Decarbonize Shipping Sector

Washington also said it will consider “reciprocal measures” to offset any fees that may be charged to US ships if the carbon levy on shipping is adopted this week.

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The United States has abandoned global talks aimed at decarbonizing the shipping sector and threatened to reciprocate against any fees that US ships could incur.

The International Maritime Organization (IMO), the United Nation’s shipping agency, is expected to reach an agreement on carbon charges for the maritime sector on Friday following two weeks of negotiations at the agency’s headquarters in London. The goal is to decarbonize the industry by “around 2050.”

A State Department spokesperson confirmed on Wednesday that the US will not be “engaging in negotiations” after news broke of a diplomatic demarche the US sent to ambassadors on Tuesday.

In the leaked note, the US said it “rejects any and all efforts to impose economic measures against its ships based on GHG emissions or fuel choice” and “urges your government to reconsider its support for the GHG emissions measures under consideration.” It also promised to “consider reciprocal measures” meant at offsetting any fees US ships may incur if the IMO adopts new emissions measures.

The spokesperson added that it was the administration’s policy to put US interests first in the “development and negotiation of any international agreements,” Reuters reported.

The US has employed the “America first” rhetoric to rationalize recent actions that have deepened the nation’s isolation from global climate initiatives, like pulling out of global discussions about an upcoming climate change assessment, withdrawing from the board of a UN’s Loss and Damage Fund, and leaving the Paris climate agreement. Last month, US representative to the UN Edward Heartney said it was the government’s “moral and civic duty” to cafe “first and foremost for our own,” and “refocus on the interests of Americans.”

World’s First

Over 50 countries across Europe, Africa, Asia, the Pacific and the Caribbean, representing a majority of the world’s fleet, are rallying behind a proposal to charge commercial vessels a flat fee for each tonne of carbon emitted. 48 countries including major shipping nations like Greece, Japan, Korea, and the UK, along with the European Commission and the International Chamber of Shipping (ICS), said the tax should range between US$18-150 per tonne of greenhouse gas.

Countries including China – the world’s largest ship-owning country – Brazil, and Saudi Arabia have opposed a flat carbon levy, arguing it would penalize trade-reliant emerging economies.

The shipping industry is a vital artery of world trade, moving some 90% of goods across international waters. However, it is also one of the most carbon-intensive industries due to its reliance on fossil fuels, responsible for nearly 3% of all greenhouse gas emissions, primarily carbon dioxide. If shipping were a country, it would be the sixth largest emitter of planet-warming greenhouse gases worldwide, ranking between Japan and Germany, according to the World Bank.

Implementing carbon pricing in the shipping industry would make the use of polluting fossil fuels more expensive, incentivizing shipping companies to explore lower-emitting fuels like ammonia, biofuels, methanol, and hydrogen.

Delegates on Wednesday said they were “going to continue negotiating with those that are prepared to talk.”

If the IMO fails to achieve an ambitious outcome this week, it’s because of the people in the room – not those trying to bully from the sidelines,” said Emma Fenton, Senior Director for Climate Diplomacy at campaigning organization Opportunity Green.

Countries are expected to reach an agreement on Friday. If adopted, the levy is expected to enter into force globally in early 2027. It would be the world’s first levy for shipping on greenhouse gas emissions.