By Abbas Nazil
A global carbon tax on the shipping industry has been postponed for at least a year after the International Maritime Organisation (IMO) voted to delay implementation, following pressure from the United States and Saudi Arabia.
The decision, made late Friday by a narrow margin of 57 votes to 49, defers further discussions until 2026, stalling one of the most ambitious international efforts to curb emissions from maritime transport.
The proposal, initially agreed in principle in April, would have required ships over 5,000 gross tonnes to cut their greenhouse gas intensity by 30 percent by 2035 and 65 percent by 2040 compared to 2008 levels.
Non-compliant vessels were expected to pay between $100 and $380 per tonne of carbon emissions starting in 2028, with a system allowing efficient operators to trade carbon credits with higher-emitting ships.
However, opposition from major oil producers, particularly the US and Saudi Arabia, led to the motion to delay the plan.
Saudi Arabia’s proposal for a one-year deferral gained support from the US, the United Arab Emirates, and China, while 70 other nations, including Japan and Greece, abstained.
US President Donald Trump denounced the proposed levy as “a green new tax scam,” warning that his administration would retaliate against any global carbon pricing applied to American ships.
Analysts have expressed concern that the delay could jeopardize progress toward decarbonizing the shipping sector, which contributes nearly 3% of global greenhouse gas emissions.
ING’s senior transport economist, Rico Luman, warned that continued hesitation could eventually lead to the policy’s collapse, calling carbon pricing “essential” to making sustainable fuels competitive and funding green investments.
The postponement highlights growing divisions among IMO member states over how to balance environmental responsibility with economic and political interests in a sector vital to global trade.