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UN shipping agency delays decision on carbon price under US pressure
Published by Global Banking & Finance Review®
Posted on October 17, 2025
3 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 17, 2025
3 min readLast updated: January 21, 2026
The UN shipping agency has delayed a decision on carbon pricing for international shipping due to US pressure, affecting global trade and emissions reduction efforts.
By Enes Tunagur and Jonathan Saul
LONDON -A majority of countries at the U.N. shipping agency voted on Friday to postpone by a year a decision on a global carbon price on international shipping, after failing to reach consensus on the emissions reduction measure amid U.S. pressure.
The decision to delay the deal is a blow to the European Union and other countries including Brazil which have been pushing for the global shipping industry to go greener and set out a price mechanism for decarbonisation.
Washington and Riyadh, the world's two largest oil producers, have strongly opposed a carbon price on shipping during talks in London at the International Maritime Organization (IMO).
The Trump administration is looking to boost U.S. economic might, including by taking a bigger role in global shipping, and has used tariffs as a weapon to extract better terms from Washington’s trade partners.
After days of disagreements, Saudi Arabia tabled a motion on Friday to defer discussions for one year, which was passed by a simple majority of 57 countries with 49 opposed who sought to continue with a deal.
U.S. President Donald Trump called on IMO member states on Thursday to vote no, saying on his Truth Social platform that Washington would "not stand for this global green new scam tax on shipping and will not adhere to it in any way, shape or form".
"The delay leaves the shipping sector drifting in uncertainty," said Faig Abbasov, director of shipping with environmental group Transport & Environment.
The IMO struck a preliminary deal to charge the global shipping industry for emissions in April after the U.S. pulled out of associated talks, prompting Washington to threaten
to use visa restrictions and sanctions on countries that voted in favour.
The IMO, which comprises 176 member countries, is responsible for regulating the safety and security of international shipping and preventing pollution.
"Let’s not celebrate. There are concerns we need to address," IMO Secretary-General Arsenio Dominguez told delegates in closing remarks.
Global shipping accounts for nearly 3% of the world's CO2 emissions. About 90% of the world's trade is conducted by sea, and emissions are set to soar without an agreed mechanism.
(Reporting by Enes Tunagur and Jonathan Saul; Editing by Peter Graff and Emelia Sithole-Matarise)
Carbon pricing is a method for reducing global warming emissions by assigning a cost to emitting carbon dioxide. It encourages companies to lower their carbon footprint by making it financially beneficial to reduce emissions.
The International Maritime Organization (IMO) is a specialized agency of the United Nations responsible for regulating shipping. It aims to ensure safe and environmentally sound shipping practices.
CO2 emissions refer to the release of carbon dioxide into the atmosphere, primarily from burning fossil fuels. These emissions are a major contributor to climate change.
Global trade involves the exchange of goods and services across international borders, which is vital for economic growth, job creation, and access to a wider variety of products.
The U.N. plays a crucial role in climate action by facilitating international agreements, such as the Paris Agreement, to combat climate change and promote sustainable development.
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