UN shipping agency delays decision on carbon price for one year amid splits

[LONDON] A majority of countries at the UN shipping agency voted on Friday (Oct 17) to postpone by a year a decision on a global carbon price on international shipping, after failing to reach consensus on the emissions reduction measure amid US pressure.

The decision to delay the deal is a blow to the European Union and other countries including Brazil which have been pushing for the global shipping industry to go greener and set out a price mechanism for decarbonisation.

Washington and Riyadh, the world’s two largest oil producers, have strongly opposed a carbon price on shipping during talks in London at the International Maritime Organization.

After days of disagreements, Saudi Arabia tabled a motion on Friday to defer discussions for one year, which was passed by a simple majority of 57 countries with 49 opposed who sought to continue with a deal.

US President Donald Trump called on IMO member states on Thursday to vote no, saying on his Truth Social platform that Washington would “not stand for this global green new scam tax on shipping and will not adhere to it in any way, shape or form”.

“The delay leaves the shipping sector drifting in uncertainty,” said Faig Abbasov, director of shipping with environmental group Transport & Environment. REUTERS