UN Delays Global Carbon Tax Vote on Shipping

The United Nations has postponed a vote on a proposal for the world’s first global carbon tax on shipping, pushing the decision back by a year following a campaign led by the U.S.

This vote was initially scheduled for this week under the UN’s International Maritime Organization (IMO) Net Zero Framework. However, many member states opted for a delay after the U.S. raised concerns, leading to a split vote where 57 countries supported the postponement while 49 were against it.

The plan, which has the backing of the European Union and Brazil, seeks to generate billions from airlines that go beyond newly established emissions limits. The funds are intended for climate change adaptation and clean energy initiatives in developing nations.

Opposition from Washington and Riyadh was significant. Saudi Arabia proposed the motion to delay discussions for a year, which ultimately gained majority support.

During this period, the Trump administration publicly expressed its strong disapproval of the initiative. Officials labeled it an “unconstitutional global tax,” warning that it could increase energy and consumer prices. President Trump, along with Secretary of State Marco Rubio, confirmed that the U.S. would vote against the proposal and urged allies to follow suit.

“I’m absolutely outraged that the IMO is considering a global carbon tax,” Trump expressed on social media. He declared the U.S. would not comply with such regulations if passed and criticized the idea of creating new regulatory bodies for green initiatives.

Administration officials further contended that the framework would not significantly decrease global emissions, while it would give unaccountable international entities the power to impose taxes on American companies and consumers.

Rubio echoed similar sentiments, emphasizing that the carbon tax would increase costs for energy, food, and fuel, stating concerns that the repercussions of this tax exceed what most people understand.

Supporters of the tax claim it is necessary for the shipping industry—responsible for around 3% of global greenhouse gas emissions—to achieve net-zero targets by the middle of the century. The outcome of this proposal will be addressed at the next IMO Marine Environment Protection Committee session, which is ongoing in London until October 17. Countries will need to agree for the tax to be implemented.