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Global Shipping Carbon Levy Faces U.S. Resistance at Critical IMO Talks

As the IMO negotiates binding decarbonization measures, the U.S. withdraws and pressures nations to reject a proposed emissions levy.

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Cargo ships are loaded with containers as it is docked at the port of Bangkok, in Bangkok, Thailand, April 3, 2025. Thailand, with a tariff rate of 37 per cent imposed by U.S. President Donald Trump, is one of six countries in the Southeast Asian region slapped with much higher-than-expected tariffs by the U.S. REUTERS/Athit Perawongmetha/File Photo
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Even ships carrying out international voyages face coming under the new scheme while at UK berths

Overview

  • The International Maritime Organization (IMO) is finalizing negotiations in London on a potential global carbon levy to decarbonize the shipping industry by around 2050.
  • The U.S., under the Trump administration, has withdrawn from the talks, labeling the proposed measures 'unfair' and threatening reciprocal actions against any imposed fees on U.S. ships.
  • Proponents, including Pacific and Caribbean nations, view the levy as a critical opportunity to finance climate initiatives and accelerate shipping's transition to greener operations.
  • Opposition from countries like China, Brazil, and Saudi Arabia centers on concerns about economic competitiveness and equity, highlighting international divisions on the issue.
  • Despite U.S. resistance, the majority of IMO delegates remain engaged, with many emphasizing the necessity of ambitious carbon pricing to achieve net-zero emissions and support climate-vulnerable regions.