The International Maritime Organisation (IMO) will meet this week to formally decide whether to impose a “carbon emissions” price on global shipping — a move supported by an EU-led bloc including Britain, China and Japan, but strongly opposed by the US.
The IMO struck a preliminary deal in April to charge the global shipping industry for emissions after the US pulled out of associated talks, prompting Washington to threaten “reciprocal measures” against any fees charged on US ships.
The April deal is now tabled for adoption at a meeting of the IMO’s environmental committee scheduled for October 14 to 17, which is expected to include the US.
Washington has continued efforts to derail the measure since April, threatening port fees and visa restrictions against countries that support it.
“The United States will be moving to levy these remedies against nations that sponsor this European-led neocolonial export of global climate regulations,” the US State Department said in a statement on October 11.
European Union states, meanwhile, have called for the IMO measure to be adopted, the European Commission said in a 12 October statement.
The IMO’s proposed marine fuel emissions standard would impose a fee on ships larger than 5,000 tons that exceed a set emissions threshold, while rewarding vessels that burn so-called "cleaner fuels".
Ships will either buy remedial units or pay a penalty if they emit more than the threshold. Those emitting less than a separate lower threshold will receive surplus units.
Revenues from the measure would be collected by an IMO “Net-Zero” Fund to be created by the IMO Secretariat, according to draft rules. Details of how revenues will be distributed have yet to be decided.
Research from University College London suggests the highly controversial IMO fuel standard could generate between $11 billion and $12 billion per year from 2028 to 2030, as most ships are likely to pay the penalty during the early years of implementation.
(Reporting by Enes Tunagur; Editing by Jonathan Saul and Jan Harvey)