• The US has threatened sanctions on countries supporting an EU-backed global framework to cut shipping emissions.
• The IMO proposal would introduce the first global pricing mechanism for maritime emissions, taking effect from 2027.
• The standoff reflects deepening transatlantic divisions over trade, energy, and climate governance.
Brussels and Washington at Odds Ahead of Pivotal IMO Decision
Brussels and Washington are headed for confrontation ahead of a decisive vote at the International Maritime Organization (IMO) this week, as nations weigh whether to ratify a global framework to curb greenhouse-gas emissions from shipping.
The European Union urged member states to back the United Nations-backed plan, calling it “a vital step toward aligning global maritime activity with net-zero commitments.” The framework, negotiated in April, would gradually tighten emissions limits on vessels, aiming to steer the industry toward carbon neutrality by mid-century.
Shipping remains one of the most difficult sectors to decarbonize. Nearly 90% of world trade still moves by sea, and most vessels rely on heavy fuel oil. The proposed regulations would establish an emissions intensity standard — cutting the amount of carbon emitted per unit of energy used — and introduce a levy system to incentivize cleaner fuels.
If adopted, the policy would represent the first global mechanism to price maritime emissions, introducing an economic signal for shipowners and operators to invest in low-carbon propulsion and alternative fuels such as ammonia or methanol.
US Threatens Retaliation, Calling Plan “Global Carbon Tax”
The United States has sharply opposed the plan, framing it as an overreach that would raise shipping costs and penalize developing economies. In a joint statement, Secretary of State Marco Rubio, Energy Secretary Chris Wright, and Transportation Secretary Sean Duffy called the framework “a European-led neo-colonial export of global climate regulations,” warning of “sanctions and port bans” on nations supporting the proposal.
Washington argues that the emissions levy — projected to add up to 10% to freight costs — amounts to a de facto carbon tax. The administration’s position reflects its broader rollback of international climate cooperation, favoring domestic energy production and conventional fuels.
Analysts say the threat of punitive action could fracture the fragile coalition of nations within the IMO, where decisions are typically reached through consensus. “This is an unprecedented level of political interference in what has traditionally been a technical regulatory forum,” said a European diplomat involved in the negotiations.
Economic Stakes and Industry Pressure
The maritime sector is under mounting scrutiny from investors and regulators to align with global net-zero targets. In 2024, international shipping accounted for 1.4% of global greenhouse-gas emissions — more than one billion metric tons of CO₂ equivalent annually, according to Clarkson Research Services.
Industry groups are divided. Major shipowners and charterers, including Maersk and Hapag-Lloyd, have urged the IMO to finalize a clear, predictable carbon pricing mechanism to drive investment in green fuels. But carriers dependent on oil-based propulsion argue the proposal would erode competitiveness and increase costs for developing economies reliant on seaborne trade.
If the plan moves forward, the emissions requirements would take effect in 2027, with mandatory compliance and payments beginning in 2029. Revenues from the carbon levy are expected to fund decarbonization technology and support least-developed countries in transitioning to cleaner maritime operations.
RELATEDARTICLE: Maersk and Amazon partner to reduce GHG emissions in Ocean Shipping
Broader Trade and Climate Implications
The confrontation adds to an already strained transatlantic relationship. The US and EU are simultaneously preparing new trade negotiations following Washington’s imposition of a 15% tariff on most European goods earlier this year. Observers warn that linking climate regulation to trade penalties risks deepening geopolitical divides at a critical juncture for global climate governance.
The EU has positioned the shipping framework as a key pillar of its broader decarbonization strategy, complementing its Carbon Border Adjustment Mechanism (CBAM) and Fit for 55 package. The US stance, by contrast, highlights the challenges of maintaining multilateral climate cooperation amid rising protectionism and energy nationalism.
“The outcome of this vote will define whether maritime decarbonization proceeds through consensus or fragmentation,” said one climate policy adviser in Brussels.
A Defining Test for Global Climate Governance
The IMO, a London-based UN agency responsible for maritime safety and pollution prevention, has faced criticism for its slow pace on emissions regulation. The upcoming vote could determine whether it retains credibility as the global authority on shipping decarbonization or cedes leadership to regional blocs.
For C-suite leaders, investors, and policymakers, the result will shape long-term capital flows into shipping, fuel infrastructure, and port operations. A unified carbon pricing framework could accelerate the transition to net-zero shipping, while a breakdown in negotiations risks prolonging policy uncertainty and delaying investment.
Whatever the outcome, the clash between Washington and Brussels underscores the growing intersection of climate ambition, trade policy, and geopolitical influence — and the difficulty of aligning them in a fragmented global economy.
Follow ESG News on LinkedIn