Landmark global shipping deal abandoned under US threats

A historic deal to reduce global shipping emissions has been abandoned after Saudi Arabia and the United States successfully ended negotiations.

More than 100 countries had gathered in London to endorse a deal first agreed in April, which would have seen shipping become the first global industry to adopt internationally mandated emissions reduction targets.

But President Trump called the project a “green scam” and representatives of his administration threatened countries with tariffs if they voted in favor.

US Secretary of State Marco Rubio said the result was a “huge victory” for Trump.

But reflecting the pressures countries face, International Maritime Organization Secretary-General Arsenio Dominguez issued a “plea” for this not to happen again.

In a dramatic conclusion on Friday, when countries should have voted to approve the deal, Saudi Arabia tabled a motion to postpone negotiations for a year.

The president said this would mean the deal would not be approved, as key treaty deadlines would have to be revised.

The motion passed with only a handful of votes.

Hon. Ralph Regenvanu, Minister of Climate Change for the Republic of Vanuatu, said Saudi Arabia’s motion was “unacceptable given the urgency we face with accelerating climate change.”

“We came to London with reluctant support for the IMO’s Net-Zero framework. Although it lacks the ambition that climate science requires, it marks an important milestone,” he said.

The shipping industry largely supported the agreement because it offered consistent global standards.

Speaking after the negotiations ended, Thomas Kazakos, secretary general of industry body the International Chamber of Shipping, said: “We are disappointed that member states were unable to agree on the way forward at this meeting.”

“The industry needs clarity to be able to make investments,” he added.

The UK and most EU countries voted to continue negotiations, but some countries, including Greece, opposed the European bloc and voted to abstain.

Among the countries that voted to postpone negotiations were Russia, Saudi Arabia and the United States. which raised concerns that the deal would lead to higher prices for consumers.

Some key countries, including China, which initially voted in favor of the deal in April, agreed to delay procedures.

The island states of the Bahamas also changed their position and Antigua and Barbuda, which had agreed in April, abstained. A delegate from the group of island states told the BBC that these countries are particularly dependent on the United States for trade and that the Trump administration has relied heavily on them to change their position.

The deal was first reached in April after ten years of negotiations and was seen as historic because it meant shipping would become the first industry in the world to set internationally enforced emissions reduction targets.

The agreement meant that from 2028, shipowners would have to use increasingly cleaner fuels or face fines.

Shipping currently accounts for 3% of global emissions, with levels increasing as global trade increases: 90% of goods are currently transported by sea. Unlike other sectors, shipping has not been able to reduce its emissions, partly due to a lack of cost incentives.

“There is no fuel as cheap as the diesel that ships use today, because when we take crude oil out of the ground we take all the good bits out of it, which is kerosene for aviation, diesel and gasoline for cars,” Faig Abbasov, program director for shipping at the Transport and Environment think tank, told the BBC during the latest EU negotiations. IMO.

This means that without intervention, the International Maritime Organization previously estimated that by 2050, emissions could increase by 10 to 150 percent.

This week’s meeting in London between the nations was aimed at giving final approval and finalizing next steps. But since April, the United States has increasingly expressed its objections to the project, fearing an increase in the prices of goods intended for its consumers.

In a post Thursday evening on Truth Social, President Trump wrote: “The United States will NOT tolerate this fraudulent new global green tax on shipping. We will not tolerate increased prices for American consumers. »

With negotiations now delayed, the carefully planned timetable for implementing regulations for 2028 does not appear feasible.

“A delay in action could require changes to the text of the agreement that would jeopardize the planned timetable and could undo years of work so far,” said Blánaid Sheeran, an observer of the talks and policy manager at the environmental NGO Opportunity Green.