Washington Rejects IMO Climate Plan, Threatens to Punish Backing Nations

The United States has formally turned down the International Maritime Organisation’s proposed Net-Zero Framework, a plan designed to slash greenhouse gas emissions from global shipping. Washington is not only rejecting the initiative but also warning that it could take retaliatory action against countries that back it.

In a joint statement on Tuesday, Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright, and Transportation Secretary Sean Duffy declared that the Trump administration will oppose any measure that risks increasing costs for American citizens, shipping operators, or energy providers.

At the centre of their objection is a proposed carbon tax on the shipping industry. Members of the IMO are set to vote on the levy in October as part of a broader strategy to decarbonise maritime transport.

The framework, first agreed in principle by a majority of IMO member states in April, calls for a $100 charge on every tonne of carbon dioxide emitted above a newly established emissions threshold. Ships with a volume greater than 5,000 gross tonnes would be required to progressively lower their greenhouse gas emissions intensity by 30 per cent by 2035 and 65 per cent by 2040, compared to 2008 levels.

Failure to meet the more stringent target would trigger a $100-per-tonne penalty, while missing a less demanding benchmark could result in fees of up to $ 380 per tonne. The plan would also create a carbon credit market, allowing owners of cleaner ships to sell credits to operators of more polluting vessels.

So far, 63 countries, including China, Brazil, and all European Union member states, have expressed support. That was enough for an initial majority, but the October vote will require the backing of two-thirds of the 108 nations that have ratified the IMO’s core pollution rules.

The United States withdrew from the negotiations earlier this year. In a memo obtained by Reuters, the State Department urged other members to reconsider their stance, reiterating Washington’s opposition to any form of carbon levy or fuel-based emissions limits. US officials argue that the plan would place an unfair financial burden on American vessels and shippers.

Industry experts warn that the US position could weaken the IMO’s influence and undermine global decarbonisation targets for an industry that transports around 80 per cent of the world’s traded goods and contributes nearly 3 per cent of global carbon dioxide emissions.

Several leading shipping companies and trade groups have publicly endorsed the concept of carbon pricing as a means to foster fair competition for low-carbon fuels. Environmental organisations say the IMO’s proposal is the most significant attempt so far to address the sector’s climate footprint. However, they caution that political rifts, especially resistance from the United States, could jeopardise its adoption.

This dispute is unfolding against the backdrop of the Trump administration’s broader retreat from international climate agreements. Washington has already withdrawn from the Paris Agreement and continues to resist global efforts to curb other environmental pollutants, including plastic waste.