Today is the last day of a critical three-day meeting at the Albert Embankment in London as the IMO’s Maritime Environment Protection Committee meets to decides shipping’s decarbonisation.
The IMO is considering the adoption of amendments to the air emissions part of the international Marine Pollution treaty with an aim of adopting the IMO Net Zero Framework.
That framework is detailed elsewhere by Shipping Australia (see below under further reading) is overwhelmingly supported by the global shipping industry.
But, in a nutshell, it creates global fuel standard that requires ships to reduce the the pollution from fuel over time, and, secondly, a market-based greenhouse gas pricing mechanism.
The U.S. Trump Administration is not best pleased.
In a joint statement by the US Secretary of State Rubio, Secretary of Energy Wright, and Secretary of Transportation Duffy, the Administration declared: “President Trump has made it clear that the United States will not accept any international environmental agreement that unduly or unfairly burdens the United States or harms the interests of the American people… The 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 economic impacts from this measure could be disastrous, with some estimates forecasting global shipping costs increasing as much as 10% or more”.
The US Administration said that it is considering:
- Pursuing investigations and considering potential regulations to combat anti-competitive practices from certain flagged countries and potential blocking vessels registered in those countries from U.S. ports
- Imposing visa restrictions including an increase in fees and processing, mandatory re-interview requirements and/or revisions of quotas for … maritime crew member visas
- Imposing commercial penalties stemming from U.S. government contracts including new commercial ships, liquified natural gas terminals and infrastructure, and/or other financial penalties on ships flagged under nations in favor of the NZF
- Imposing additional port fees on ships owned, operated, or flagged by countries supporting the framework; and
- Evaluating sanctions on officials sponsoring activist-driven climate policies that would burden American consumers, among other measures under consideration.
Neo-colonial exports and cutting of noses
The Administration concluded: “The United States will be moving to levy these remedies against nations that sponsor this European-led neocolonial export of global climate regulations”.
Internationally-leading container industry analyst, Lars Jensen, commented that if such actions were implemented they could have significant disruptive effects on US supply chains.
“Imposing fees or restrictions on ships or shipping will merely increase the cost of shipping to and from the US, and hence place the financial cost on the US exporters and importers. I can’t help but think of the old saying: Cutting off your nose to spite your face,” Mr Jensen concluded.
In response, Mr Kenneth Daniels, President of Premier Container Service, wrote: “The current Administration is out of their minds“.
Further reading
Global shipping industry reaffirms support for the IMO Net Zero Framework
IMO approves world-first framework for net zero greenhouse gas emissions
The IMO Net-Zero Framework – FAQs by the International Maritime Organization
Taking Action to Defend America from the UN’s First Global Carbon Tax – the International Maritime Organization’s (IMO) “Net-Zero Framework” Office of the Spokesperson, US Dept of State
