A historic plan to reduce global shipping emissions collapsed after Saudi Arabia and the United States pressured negotiators to halt the talks. More than 100 countries had gathered in London to approve the deal first agreed in April, which aimed to make shipping the world’s first industry with internationally mandated emission targets.
US opposition derails the agreement
US President Donald Trump labeled the plan a “green scam” and warned countries of tariffs if they supported it. US Secretary of State Marco Rubio called the outcome a “huge win” for the administration. Arsenio Dominguez, Secretary General of the International Maritime Organisation, urged countries not to repeat the political pressures that disrupted the talks.
Saudi Arabia calls to delay
On Friday, Saudi Arabia proposed adjourning the talks for a year, preventing the deal from being approved. The chairman confirmed the motion’s passage meant timelines for the treaty would need revising. The motion passed by only a few votes. Ralph Regenvanu, Vanuatu’s climate change minister, criticized the move as “unacceptable” given accelerating climate change. He emphasized that while the framework lacked ambition, it marked a crucial step.
Industry support and disappointment
Shipping groups had broadly supported the deal because it created consistent global standards. Thomas Kazakos, secretary-general of the International Chamber of Shipping, said member states’ failure to reach an agreement left the industry disappointed. He warned that clarity was essential for future investments. The UK and most EU nations voted to continue talks, but Greece and some others abstained. Countries favoring the adjournment included Russia, Saudi Arabia, and the US, citing concerns over higher consumer prices. China and other nations that initially supported the deal also agreed to delay, while island states like the Bahamas and Antigua and Barbuda shifted positions under US pressure.
A decade-long effort undone
The agreement had emerged after ten years of negotiations and was historic because shipping would have faced emission reduction mandates from 2028. Shipowners would have needed cleaner fuels or faced fines. Shipping produces roughly 3% of global emissions, increasing with global trade, as 90% of goods travel by sea. Unlike other sectors, shipping struggles to cut emissions due to the cost of alternatives. Faig Abbasov, maritime transport director at think tank Transport and Environment, explained that diesel remains the cheapest fuel, while alternatives such as kerosene and cleaner fuels come at higher costs. Without intervention, the International Maritime Organisation predicted emissions could rise 10% to 150% by 2050.
Timeline uncertainty
The London meeting aimed to finalize the deal and set next steps. Since April, US opposition has intensified, focused on potential price hikes for American consumers. President Trump posted on Truth Social, declaring the US would reject any global “green tax” on shipping and would not tolerate higher prices. With the delay, the original plan to implement regulations by 2028 now appears unfeasible. Blánaid Sheeran, an observer and policy officer at Opportunity Green, warned that delays could force changes to the agreement, potentially undoing years of work.
