The European Union has reiterated its backing for the International Maritime Organization’s (IMO) Net-Zero Framework ahead of a key vote this week, despite strong objections from the Trump administration, which warns that countries endorsing the initiative may face economic repercussions. The extraordinary session of the IMO, scheduled for October 14-17, will include voting on the framework, aimed at implementing a carbon-pricing regime for the international shipping industry. This initiative proposes a stricter marine fuel-intensity standard combined with a compliance mechanism that would fund low-carbon initiatives.
In a recent joint statement, U.S. officials, including Secretary of State Marco Rubio, expressed that President Trump opposes any international agreements that could negatively impact U.S. interests. They cautioned that the economic repercussions of the framework could be severe, predicting a potential rise in global shipping costs by over 10%. The administration characterized the proposal as a harmful global tax regime that could impose penalties on all IMO member states.
Despite the U.S. warnings, the EU remains committed to pushing for the framework, highlighting its relevance as a significant step towards decarbonizing the shipping sector. The framework is projected to encompass vessels over 5,000 gross tons, covering about 85% of international shipping emissions. Major shipping associations have also voiced support, stating that a unified global regulatory approach is essential for effective decarbonization.
Should the framework be approved, a technical committee will convene shortly after the vote to finalize essential guidelines ahead of a potential implementation date in 2027.
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