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The U.S. rejects the IMO Net-Zero Framework and threatens retaliatory measures. (Photo: iStock)
The United States on Friday warned of retaliatory restrictions and sanctions against countries that vote in favor of an International Maritime Organization (IMO) proposal to cut greenhouse gas (GHG) emissions from ships, which is scheduled for a vote this week.
Washington is weighing port bans, visa restrictions, commercial penalties, additional port fees, and sanctions targeting countries that support the IMO’s plan.
Weak U.S. shipbuilding sector faces new costs under IMO plan
The U.S. has opposed the IMO’s framework since it was first proposed in April. Around the same time, the White House issued an executive order to “restore America’s maritime dominance,” seeking to make U.S.-built vessels commercially competitive in global trade.
The American shipping industry, however, has not been sailing well. According to The Atlantic, the United States builds only about 0.13 percent of the world's large vessels, while China produces roughly 60 percent of all new ships and has more than 200 times America’s shipbuilding capacity.
Washington views the IMO’s carbon pricing plan as an added burden on its already struggling shipping sector and an unfair “carbon tax” on American consumers.
“The Administration unequivocally rejects this proposal before the IMO and will not tolerate any action that increases costs for our citizens, energy providers, shipping companies, their customers, or tourists,” Secretary of State Marco Rubio, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy said in a joint statement released on Oct. 10.
U.S. officials oppose the IMO plan, citing potential cost increases for citizens, energy providers, shipping companies, and tourists. (Photo: Marco Rubio)
U.S. and China take opposite sides on IMO’s framework
U.N. member states are set to vote this week on the IMO Net-Zero Framework, a proposal that has exposed a deep divide between Washington and Beijing. While the U.S. warns that the plan would unfairly burden its shipping sector, China has emerged as one of its strongest backers, seeing it as a way to advance its shipbuilding and green ambitions.
The initial draft was approved by 63 states, with 16 voting against and 24 abstaining. A majority will be required for adoption, though it remains unclear whether the measure can pass if more countries abstain, Reuters reported.
The framework would establish a global carbon-pricing system requiring all ships, regardless of flag, to adopt cleaner fuels or technologies. Ships would report their GHG Fuel Intensity (GFI) to the IMO each year. Vessels exceeding emission thresholds would pay a fee based on their excess output, with stricter limits imposed annually. Conversely, ships using cleaner fuels would receive rewards.
“These fuel standards would conveniently benefit China by requiring the use of expensive fuels unavailable at global scale,” the U.S. joint statement argued.
At the London International Shipping Week in September, leaders from China’s state-owned shipping group Cosco and the China Association of the National Shipbuilding Industry voiced support for the IMO plan, signaling Beijing’s alignment with the framework.
Source: The Atlantic, Reuters (1) (2), IMO
Read more: IMO reaches initial deal on first global shipping carbon pricing
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