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US Opposes IMO’s Global Carbon Levy; Cites Impact on American Interests

The United States has officially opposed the International Maritime Organization’s (IMO) proposed carbon levy, labeling it a “global carbon tax on Americans” and promising to build resistance before a decisive vote in October. Secretary of State Marco Rubio, alongside Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright, and Transportation Secretary Sean Duffy, stated President Donald Trump would reject any international environmental pact perceived as unfairly burdening the US or harming its citizens’ interests.

The proposed framework, endorsed in principle by most IMO member nations in April, aims to reduce shipping sector greenhouse gas emissions through new fuel standards and levies on non-compliant ships. Supporters argue these steps are vital for the IMO’s 2050 climate objectives, while the US claims the framework favors China and punishes US-led industries like LNG and biofuels.

The US statement highlighted that these regulations would necessitate costly, globally scarce fuels, potentially imposing millions of dollars in fees, directly increasing expenses for American consumers. The administration hinted at potential retaliation if the IMO implements the plan, although no specifics were provided.

The framework includes a fuel standard and a pricing mechanism based on the GHG intensity of ship fuel. Ships not meeting emissions reduction goals would have to purchase “remedial units,” costing $380 per CO2-equivalent ton for a base target trajectory and $100 for direct compliance from 2028 to 2030, with future prices undecided.

An October vote will require a two-thirds majority (108 of 176 IMO members) if consensus is not achieved. With positions becoming rigid, a formal vote appears increasingly likely. Environmental groups criticize the US stance, warning that delaying marine fuel emissions regulation could hinder the sector’s climate goals.

Source: Splash247

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