Landmark global shipping deal abandoned under US threats

A landmark deal to cut global shipping emissions has been abandoned after Saudi Arabia and the US succeeded in ending the talks.

More than 100 countries had gathered in London to approve a deal first agreed in April, which would have seen shipping become the world’s first industry to adopt internationally mandated targets to reduce emissions.

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

US Secretary of State Marco Rubio declared the outcome a “huge win” for Trump.

But reflecting the pressure countries faced, the Secretary General of the International Maritime Organisation Arsenio Dominguez issued a “plea” for this not to be repeated.

In a dramatic conclusion on Friday, when countries should have been voting to approve the deal, Saudi Arabia tabled a motion to adjourn the talks for a year.

The chairman said this would mean that the agreement was not approved, as key timelines for the treaty would have to be revised.

The motion passed by just a handful of votes.

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

“We came to London in reluctant support of the IMO’s Net-Zero Framework. While it lacks the ambition that climate science demands, it does mark a significant step,” he said.

The shipping industry has been broadly supportive of the deal because it offered consistent global standards.

Speaking after the talks ended, Thomas Kazakos, secretary-general of the industry body the International Chamber of Shipping, said : “We are disappointed that member states have not been able to agree a way forward at this meeting.”

“Industry needs clarity to be able to make the investments,” he added.

The UK and most EU nations voted to continue the talks, but some countries including Greece went against the EU bloc and voted to abstain.

The countries that voted in favour of adjourning the talks included Russia, Saudi Arabia and the US, who raised concerns that the deal would lead to price rises for consumers.

Some key countries including China that had initially voted to support the deal in April agreed to delay proceedings.

Island states Bahamas also changed their position and Antigua and Barbuda, who agreed in April, abstained. A delegate from the island states group told the BBC that these nations particularly rely on the US for trade and had been leaned on heavily by the Trump administration to change their position.

The deal was first agreed in April after ten years of negotiations and was considered historic as it meant shipping was set to become the first industry in the world with internationally mandated targets to reduce emissions.

The agreement had meant that from 2028 ship owners would have to use increasingly cleaner fuels or face fines.

Shipping currently makes up 3% of global emissions, with levels increasing in line with global trade rises – 90% of goods are currently transported via the sea. Unlike other sectors shipping has been unable to reduce its emissions, in part due to the lack of cost incentive.

“There is no fuel as cheap as diesel that ships use today because when we take crude oil out of the ground, we take out all the nice bits, that’s the kerosene for aviation, diesel and petrol for cars,” Faig Abbasov, programme director for maritime transport at think tank Transport and Environment, told the BBC during the last IMO negotiations.

This means without intervention the International Maritime Organisation previously estimated that by 2050 emissions could grow by between 10% and 150%.

The meeting this week in London between nations had been to make the final approval and finalise the next steps. But since April the US has been increasingly vocal about its objections to the plan which they are concerned could raise prices for goods for its consumers.

Posting on Truth Social on Thursday night President Trump wrote: “The United States will NOT stand for this Global Green New Scam Tax on Shipping. We will not tolerate increased prices on American Consumers.”

With talks now delayed the carefully planned timeline to get the regulations in place for 2028 does not appear feasible.

“A delay in action may require changes to the text of agreement that undermine the planned timeline, and could revert years of work to date,” said Blánaid Sheeran, an observer to the talks and policy officer at environmental NGO Opportunity Green.