IMO delays global shipping carbon price plan

October 18, 2025

A majority of nations at the United Nations’ International Maritime Organization (IMO) voted on Friday to delay by one year a crucial decision on implementing a global carbon pricing mechanism for international shipping. The move came after member states failed to reach a consensus on how to reduce emissions, with strong pressure from the United States to postpone the plan.

Delay frustrates push for maritime decarbonization

The postponement marks a setback for the European Union, Brazil, and several other countries advocating for a faster transition toward greener maritime operations. These nations have been calling for a concrete carbon price on shipping to fund and accelerate the industry’s decarbonization efforts.

However, the United States and Saudi Arabia—the world’s largest oil producers—firmly opposed the measure during negotiations in London. On Friday, Saudi Arabia proposed a motion to defer talks for another year, which passed narrowly with 57 votes in favor and 49 against.

Divided support among key maritime nations

Earlier in April, countries such as China, Greece, Cyprus, Japan, and South Korea expressed support for a global carbon pricing system. Yet when the vote came, China supported the delay, while the others chose to abstain. Even if an agreement is reached in 2026, the IMO’s current roadmap suggests that carbon payments from ships would not begin until 2028.

U.S. opposition and political pressure

Former U.S. President Donald Trump urged IMO member states to reject the carbon levy, labeling it a “global green scam tax” on his Truth Social platform. Trump’s administration has signaled a renewed interest in exerting influence over international maritime policy, using trade tariffs in the past to secure better terms for U.S. interests.

Industry reaction: uncertainty for green shipping investments

The maritime sector had anticipated that a global framework would help de-risk investments in low-carbon fuels and modern ship technologies. Industry leaders expressed frustration over the delay.

Maersk, one of the world’s largest shipping companies, described the IMO’s decision as a setback to decarbonization momentum, saying it will wait to see how the organization plans to move forward. Environmental group Transport & Environment echoed this concern, warning that the postponement “leaves the shipping sector adrift in uncertainty,” according to Faig Abbasov, the group’s Director of Shipping.

The stakes: shipping’s climate impact

The International Maritime Organization, which includes 176 member states, oversees global maritime safety, security, and pollution prevention. Shipping is responsible for nearly 3% of global CO₂ emissions, with about 90% of world trade transported by sea. Without a clear emissions pricing mechanism, analysts warn that the sector’s carbon footprint could rise sharply in the coming decade.