Global Shipping Carbon Levy Delayed After US Pressure Campaign
Global Shipping Carbon Levy Delayed After US Pressure Campaign

Plans to introduce a global levy on greenhouse gas emissions from shipping have been postponed for at least a year after a decisive vote at the International Maritime Organisation (IMO) in London. The move follows an intense lobbying campaign by the Trump administration, which threatened countries and officials with tariffs, penalties and visa revocations if they supported the measure.

The levy, which would require shipowners to pay a charge on CO2 emissions and provide incentives for cleaner fuels, was approved by a majority of IMO member states in April. However, under the organisation’s rules, the decision needed to be reaffirmed at a further meeting this week. After four days of wrangling, 57 countries voted to delay the proposal, with 49 against and 21 abstentions.

US officials were accused of “bullying” and “intimidation” by some delegates. Arsenio Dominguez, the IMO secretary general, chided delegates for the fractious nature of the discussions, urging them not to repeat such tactics in future. Dr Simon Bullock of the Tyndall Centre said powerful fossil fuel states were blocking climate cooperation, while Ralph Regenvanu, Vanuatu’s climate minister, called the delay “unacceptable given the urgency of accelerating climate change”.

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The postponement creates uncertainty for the shipping industry and global trade. John Maggs of the Clean Shipping Coalition said the IMO had “squandered an important opportunity” to tackle shipping’s contribution to climate breakdown. Countries will reconvene in a year to reconsider the proposal, but even if agreed, the levy would take years to implement due to further technical assessments.

Environmental groups had hoped the levy could raise around $10 billion annually, though most of the revenue would stay within the shipping industry. The delay marks a setback for climate action, with critics accusing the US and allied petrostates such as Saudi Arabia of obstructing progress.

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