US withdraws support for IMO global carbon tax, pushes alternatives

The United States has withdrawn its support for the IMO's global carbon tax framework. Citing Donald Trump's 'America First' policy, Washington led a coalition to push for alternative proposals, calling the plan a tax on American consumers.

The United States has withdrawn its support for the proposed International Maritime Organisation (IMO) global carbon tax framework, as Washington led a coalition effort during the 84th session of the IMO Marine Environment Protection Committee (MEPC 84) to push alternative proposals.

US Cites 'America First' Policy in Opposition

According to a statement by the US Department of State on Friday, Department Spokesperson Tommy Pigott said that the US and its diplomats acted in line with US President Donald Trump's "America First" foreign policy by opposing the Net-Zero Framework (NZF), which it described as a "fundamentally flawed proposal" that would have imposed a global carbon tax on American consumers, shipping companies and the energy sector.

The statement said the US, along with Saudi Arabia, Liberia, Panama and Argentina, formed a coalition that successfully pushed the IMO to consider alternative proposals instead of advancing the NZF in its current form.

"US diplomats at the 84th session of the International Maritime Organisation's Marine Environment Protection Committee (MEPC 84) successfully delivered on President Trump's America First foreign policy by forcing the organisation to negotiate on alternative proposals that will not harm American consumers and businesses," the statement read.

It added that the committee agreed to establish a working group to examine alternative proposals, including those submitted by Japan, Panama, Argentina and Liberia, which together represent more than 30 per cent of global shipping tonnage.

According to the US State Department, the move indicates weakening support for the original Net-Zero Framework proposal and signals a shift toward what it described as "pragmatic solutions" for global shipping emissions policy.

"The United States remains strongly opposed to the Net-Zero Framework, a fundamentally flawed proposal that would have imposed a global carbon tax on American consumers and our shipping and energy industries," the statement added.

Understanding the Net-Zero Framework

The development marks a significant setback for the proposed IMO climate initiative, which aimed at decarbonising global shipping through a unified carbon pricing mechanism.

The IMO's Net-Zero Framework refers to a new set of international regulations developed under the International Maritime Organisation's 2023 greenhouse gas (GHG) strategy, aimed at reducing emissions from global shipping.

According to the regulation, the framework is designed to align the maritime sector with long-term climate goals by introducing binding measures to cut pollution from ships. It consists of two key components. The first is a global fuel standard, which requires ships to gradually reduce the greenhouse gas intensity of the fuels they use across the full life cycle, effectively pushing the industry toward cleaner energy sources. The second is a pricing mechanism that places a cost on GHG emissions from ships, incentivising operators to lower their emissions in order to comply with the evolving fuel standards.

The IMO clarified that its Net-Zero Framework operates as a market-based regulatory system built around emissions performance targets and tiered compliance charges. Rather than functioning as a uniform global carbon tax, it is designed as an incentive-based mechanism that encourages shipping companies to reduce emissions while generating funds to support the sector's transition toward decarbonisation. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)