Unlock the White House Watch newsletter for free
Your guide to what the 2024 US election means for Washington and the world
The US has threatened to retaliate against any international levy imposed on ships for their carbon emissions amid crunch talks to agree such a measure this week.
Washington has urged other members of the UN’s International Maritime Organization to reconsider their support for the measure, adding that the US would not attend this week’s negotiations, according to three people close to the talks.
“Should such a blatantly unfair measure go forward, our government will consider reciprocal measures so as to offset any fees charged to US ships”, read a copy of the US message seen by the Financial Times.
“These measures would impose substantial economic burdens on the sector and drive inflation globally.”
The intervention is likely to anger environmentalists and countries that have been pushing for strong measures to decarbonise shipping, particularly after President Donald Trump imposed significant costs on trade through his sweeping tariffs.
The shipping industry has also been rattled by a US proposal to charge fees of up to $1.5mn on every Chinese-built vessel calling at its ports.
By Friday, countries at the IMO are expected to agree an economic measure that could include the first-ever global price for an industry’s carbon emissions, a development that could have implications for the future direction of climate regulations.
Those particularly exposed to climate change such as Pacific island nations have called for a levy as high as $150 to be imposed on every tonne of shipping’s carbon emissions.
Such a measure on the internationally regulated shipping industry is also seen by environmentalists as a rare opportunity to begin raising a global fund to address climate change, with some calling for these funds to be directed towards poorer countries.
The industry, which remains almost entirely dependent on fossil fuels and is responsible for an estimated 3 per cent of global emissions, has been slow to decarbonise because of the limited availability of green fuels that can power large vessels.
As an IMO member state, the US was committed to a 2023 agreement to achieve net zero shipping emissions “by or around” 2050, as well as set an economic measure to achieve this goal.
Since his return to the White House in January, Trump has vowed to withdraw the US from various international bodies and agreements, including the World Health Organization and the Paris climate accord.
The world’s largest economy has now warned in its message that the agreed targets for shipping “would unwisely promote the use of hypothetical expensive and unproven fuels”, adding that it “rejects any and all efforts to impose economic measures against its ships based on GHG emissions”.
The US said it opposed “any proposed measure that would fund any unrelated environmental or other projects outside the shipping sector”, as well as proposals that would give preferential treatment to less developed countries.
Less than 1 per cent of the world’s shipping fleet was registered in the US last year, and the country is seen as a less influential player at the IMO than in other international forums.
IMO mediators seek to reach agreements through global consensus but can put proposals down to a vote. Attendees at the talks in London said member states were yet to reach a consensus, with proposals ranging from a levy on every tonne of shipping emissions to a carbon credit trading scheme.
But the latest US intervention is consistent with Trump’s combative approach to diplomacy and his ambition to withdraw from existing climate agreements.
“President Trump has made it clear that the US will not accept any international environmental agreement that unduly or unfairly burdens the US or the interest of the American people,” the US said in its message to IMO member states.
“While we will not ignore threats to our natural environment, President Trump promised the American people a return to energy dominance.”
Climate Capital
Where climate change meets business, markets and politics. Explore the FT’s coverage here.
Are you curious about the FT’s environmental sustainability commitments? Find out more about our science-based targets here
