Shipping Companies Back Landmark Global Greenhouse Gas Fee, Facing Opposition from Trump Officials

Nearly 200 shipping companies are pushing for global regulations to charge a fee on greenhouse gas emissions. They want this effort to be part of a broader transition to greener shipping practices. The group, known as the Getting to Zero Coalition, will address member nations of the International Maritime Organization (IMO) in London next month to advocate for this change.

Jesse Fahnestock, who leads decarbonization efforts at the Global Maritime Forum, stresses the importance of industry support in this initiative. However, the Trump administration is firmly against the proposal, viewing it as a potential tax imposed by the UN. They argue it could unfairly burden American businesses. Despite this, many U.S. shipping companies support a unified global system, rather than multiple regional regulations that could lead to double costs. Kathy Metcalf, former president of the Chamber of Shipping of America, highlights the need for coherence in emission regulations.

Shipping emissions have increased over the last decade, now accounting for about 3% of global emissions. This rise is tied to larger ships that consume more fossil fuels. The IMO has set a goal to reach net-zero emissions by 2050 and promote the use of cleaner fuels. In April, member states agreed on a framework to implement a minimum fee for greenhouse gases emitted beyond certain thresholds, alongside setting standards for cleaner marine fuels.

Coming up is a critical decision: if the regulations will take effect in 2027. If approved, they would apply to larger ships, responsible for 85% of emissions in international shipping. Failure to agree could stall the industry’s efforts to combat climate change. Delaine McCullough, president of the Clean Shipping Coalition, emphasized the importance of these regulations for the sector’s contribution to global climate goals.

There’s a noticeable split, with U.S. officials warning other countries about potential repercussions for supporting the regulations. They argue that these measures could disproportionately benefit countries like China, which are making strides in developing cleaner fuels.

Despite U.S. opposition, expert opinions suggest a majority of countries may support the new regulations. Faig Abbasov from Transport and Environment advocates for these changes to kickstart the decarbonization of the shipping industry.

With the upcoming meeting, companies are eager for a more certain regulatory environment that will allow them to invest in cleaner technologies. The International Chamber of Shipping, representing a substantial portion of the global fleet, is also supportive of these changes.

By adopting these regulations, shipping could take significant steps towards reducing its environmental impact and meet future sustainability goals.



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Getting To Zero Coalition, international shipping, shipping emissions