IMO delays decision on carbon price

US and Saudi Arabia strongly oppose levy on international shipping

LONDON:

A majority of countries at the UN shipping agency voted on Friday to postpone by a year a decision on a global carbon price on international shipping, after failing to reach consensus on the emissions reduction measure amid US pressure.

The delay is a blow to the European Union and other countries including Brazil which have been pushing for the shipping industry to go greener and set out a price mechanism for decarbonisation. Washington and Riyadh, the world's two largest oil producers, have strongly opposed the carbon price

After days of disagreements during the talks at the International Maritime Organization (IMO) in London, Saudi Arabia tabled a motion on Friday to defer discussions for one year, which was passed by a simple majority of 57 countries with 49 opposed who sought to continue with a deal.

Countries such as China, Greece, Cyprus, Japan and South Korea had supported a carbon price in April. China on Friday voted in favour of delaying the decision, while the others abstained.

It is not clear when a carbon price would enter into force even if a consensus can be found next year, as the IMO had envisaged ships would only pay for emissions from 2028. US President Donald Trump called on IMO member states on Thursday to vote no, saying on his Truth Social platform that Washington would "not stand for this global green new scam tax on shipping and will not adhere to it in any way, shape or form".