The United States has vehemently rejected the International Maritime Organization’s “Net-Zero Framework” proposal, established earlier this year, to reduce greenhouse gas emissions from the global shipping industry by imposing the first international carbon tax on vessels.
Secretary of State Marco Rubio, Secretary of Commerce Howard Lutnick, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy released a statement Tuesday lambasting the framework, saying the administration would not accept any international agreement that would “unduly or unfairly burden” the U.S.
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“Whatever its stated goals, the proposed framework is effectively a global carbon tax on Americans levied by an unaccountable UN organization,” the statement read.
The secretaries claimed that the fuel standards detailed in the net-zero framework would ultimately benefit China and make it impossible to use lower-emissions options, such as liquified natural gas and biofuels, to fuel the shipping industry.
“Under this framework, ships will have to pay fees for failing to meet unattainable fuel standards and emissions targets,” they continued. “These fees will drive up energy and transportation and leisure cruise costs. Even small vessels would incur millions of dollars in fees, directly driving up costs for American consumers.”
Members of the International Maritime Organization, a specialized agency within the United Nations that oversees the shipping industry, came to an agreement in April on charging shipping companies for greenhouse gas emissions released by their vessels.
The fee is intended to accelerate a transition to the use of cleaner fuels.
If ship owners exceed certain thresholds of emissions, they would face a minimum tax of $100 for every ton of carbon dioxide emitted over the lowest baseline.
Those that exceed higher emissions thresholds will be forced to pay a $380 fee.
If adopted, the tax would go into effect in 2028.
The U.S. was notably absent from the agreement, as the Trump administration leveled threats against members who supported the fee at the time. U.S. officials reiterated those threats on Tuesday.
“Our fellow IMO members should be on notice that we will look for their support against this action and not hesitate to retaliate or explore remedies for our citizens should this endeavor fail,” the secretaries said.
The international tax is expected to raise upward of $40 billion by 2030 and reduce emissions by 8% in the same time frame. The agreement did not go as far as some members had wanted, as several developing nations had hoped to see a blanket levy on the industry.
Out of the 176 IMO member states, 63 voted in favor of the agreement in April, including China, Brazil, and the EU. Sixteen members voted against.
The framework could be adopted as soon as October, but it will require a two-thirds majority vote in favor.
UN SETS CARBON TAX ON SHIPPING IN DEFIANCE OF TRUMP THREAT
It was not clear what type of reciprocal measures the Trump administration would impose if the framework is approved this fall. The U.S. only makes up roughly 0.57% of worldwide commercial shipping, with around 180 vessels bearing U.S. flags.
“The Trump Administration unequivocally rejects this proposal before the IMO and will not tolerate any action that increases costs for our citizens, energy providers, shipping companies and their customers, or tourists,” the secretaries said Tuesday. “We will fight hard to protect the American people and their economic interests.”