Crisis Rocks IMO As Trump Administration Declares War On Net Zero Shipping Plan

The US government has slammed the International Maritime Organization’s net zero framework and threatens to retaliate against nations backing it.

A joint statement by US Secretary of State Marco Rubio, Secretary of Commerce Howard Lutnick, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy, said the Trump Administration “unequivocally rejects” the net zero framework proposal that the IMO is aiming to reach agreement on in October.

The joint statement said the Trump Administration, “will not tolerate any action that increases costs for our citizens, energy providers, shipping companies and their customers, or tourists”.

However, the statement did not merely reject the IMO’s net zero proposals but also said that the US would retaliate against nations backing them at the MEPC meeting in October.

“We will fight hard to protect the American people and their economic interests. Our fellow IMO members should be on notice that we will look for their support against this action and not hesitate to retaliate or explore remedies for our citizens should this endeavour fail.”

There was no mention of what shape retaliation or remedies might take, but tariffs have very much been the Trump Administration’s weapon of choice.

The strongly worded rejection of the proposals follows the US delegation walking out of a vote at extraordinary meeting of the MEPC at the IMO in April. Despite the US walkout and some member states either abstaining or voting against the proposals the necessary majority was attained to take the framework forward to the next meeting in October.

 

The Trump Administration’s threat of retaliation against countries backing the proposals will add further difficulties to what was already expected to be a challenging meeting in October. In May DNV Maritime CEO Knut Ørbeck-Nilssen, told a webinar, “Considering that the US withdrew from the whole process, I think it is still uncertain what will happen in October.”

While those pushing for net zero targets were critical of the proposals for not providing enough incentives for the switch green fuels such as ammonia or methanol, the Trump Administration railed against potentially higher costs for ship owners and operators using LNG and biofuels with the imposition of what it sees as a global carbon tax.

“Whatever its stated goals, the proposed framework is effectively a global carbon tax on Americans levied by an unaccountable UN organization. These fuel standards would conveniently benefit China by requiring the use of expensive fuels unavailable at global scale,” the statement said.

China is at the forefront of developing alternative fuels. According to the Methanol Institute when it comes to developing green methanol production China represents more than half of the total announced capacity to 2030 and in the near term will provide 75 to 80% up to 2028.

 

Rubio, Lutnick, and Duffy stated, “These standards would also preclude the use of proven technologies that fuel global shipping fleets, including lower emissions options where US industry leads such as liquified natural gas (LNG) and biofuels. Under this framework, ships will have to pay fees for failing to meet unattainable fuel standards and emissions targets.”

The US is one of the world’s largest producers and exporters of LNG.

Net zero in shipping refers to the goal of reducing net greenhouse gas (GHG) emissions from the maritime shipping industry to zero by around 2050. This involves drastically cutting emissions from ships, which currently account for about 3% of global emissions, by adopting new fuels and energy efficiency measures. The International Maritime Organization (IMO), the UN body regulating global shipping, has set a strategy aiming for this net-zero target by 2050, with interim goals to cut emissions 20% by 2030 and 70% by 2040 compared to 2008 levels.