In a growing tension over tariffs, the U.S. has expressed strong opposition to the proposed Net-Zero Framework, or Global Carbon Tax, supported by India, China, and various other nations. The U.S. asserts it won’t accept any international environmental agreements that may unduly burden its economy or harm American interests.
The International Maritime Organization (IMO) is set to discuss the Net-Zero Framework this October, aimed at reducing greenhouse gas emissions from shipping. The U.S. Department of Energy issued a warning to other IMO members, indicating potential retaliation if the proposal moves forward without their support.
In April, India and 62 other countries voted in favor of this unprecedented global carbon tax, projected to generate up to $40 billion by 2030. This tax is designed solely for emission reduction in the shipping sector, not for climate initiatives in developing countries. While India, China, and Brazil back the initiative, it faces opposition from oil-rich countries like Saudi Arabia, the UAE, and Russia. The U.S. delegation was notably absent during these discussions.
Experts note that the proposed framework could disproportionately affect American industries by mandating fuel standards that favor other nations, particularly China, and limit the use of existing lower-emission technologies championed by the U.S.
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