Shipping companies support 1st global fee on greenhouse gases, opposed by Trump admin

Nearly 200 shipping companies said Monday they want the world’s largest maritime nations to adopt regulations that include the first-ever global fee on greenhouse gases to reduce their sector’s emissions.

The Getting to Zero Coalition, an alliance of companies, governments and intergovernmental organizations, is asking member states of the International Maritime Organization to support adopting regulations to transition to green shipping, including the fee, when they meet in London next month. The statement was shared exclusively with The Associated Press in advance.

“Given the significance of the political decision being made, we think it is important that industry voices in favor of this adoption be heard,” Jesse Fahnestock, who leads decarbonization work at the Global Maritime Forum, said Monday. The forum manages the Getting to Zero Coalition.

The Trump administration unequivocally rejects the proposal before the IMO and has threatened to retaliate if nations support it, setting the stage for a fight over the major climate deal. The U.S. considers the proposed regulatory framework “effectively a global carbon tax on Americans levied by an unaccountable U.N. organization,” the U.S. Secretaries of State, Commerce, Energy and Transportation said in a joint statement last month.

U.S.-based shipping companies, however, have endorsed it. The Chamber of Shipping of America wants one global system, not multiple regional systems that could double charge vessels for their emissions depending on the route, said Kathy Metcalf, the chamber's president emeritus.

Shipping emissions have grown over the last decade to about 3% of the global total as vessels have gotten bigger, delivering more cargo per trip and using immense amounts of fossil fuels. The IMO, which regulates international shipping, set a target for the sector to reach net-zero greenhouse gas emissions by about 2050, and has committed to ensuring that fuels with zero or near-zero emissions are used more widely.

In April, IMO member states agreed on the contents of a regulatory framework to impose a minimum fee for every ton of greenhouse gases emitted by ships above certain thresholds and set a marine fuel standard to phase in cleaner fuels. The IMO aims for consensus in decision-making but, in this case, had to vote. The United States was notably absent.

Now nations have to decide if the regulations will enter into force in 2027. If agreed upon, the regulations will become mandatory for large oceangoing ships over 5,000 gross tonnage, which emit 85% of the total carbon emissions from international shipping, according to the IMO.

If nations don't agree, shipping’s decarbonization will be further delayed and “the chance of the sector playing a proper and fair part in the fight to keep global heating below dangerous levels will almost certainly be lost,” said Delaine McCullough, president of the Clean Shipping Coalition and Ocean Conservancy shipping program director.

The U.S. secretaries said in their statement that “fellow IMO members should be on notice” the U.S. will “not hesitate to retaliate or explore remedies for our citizens” if they do not support the United States, against this action. They said ships will have to pay fees for failing to meet “unattainable fuel standards and emissions targets,” driving up costs, and the fuel standards would “conveniently benefit China.” China is a leader in developing and producing cleaner fuels for shipping.

While U.S. opposition and pressure cannot be taken for granted, it still appears as though a majority of countries currently support the regulations, said Faig Abbasov from Transport and Environment, a Brussels-based environmental nongovernmental organization. Abbasov said the deal reached in April was not ambitious enough, but this is an opportunity to launch the sector’s decarbonization and it can be strengthened.

Shipping companies want the regulations because it gives them the certainty needed to confidently make investments in cleaner technologies, such as fuels that are alternatives to fossil fuels and the ships that run on them. In addition to the Getting to Zero Coalition, the International Chamber of Shipping, which represents over 80% of the world’s merchant fleet, is advocating for adoption when nations meet at IMO Headquarters in London from Oct. 14 to 17.

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AP Writer Sibi Arasu contributed to this report.

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