-
The Trump administration has lined up possible sanctions against countries that will sign the International Maritime Organization’s Net Zero Framework, which aims to reduce the negative environmental impact of the global shipping industry
-
The IMO is meeting from October 14 to 17 in a special session to consider the adoption of the framework
-
Among actions being considered by the US include blocking from US ports vessels registered in countries that have signed the agreement, and visa restrictions and higher fees for maritime crew members
-
Others include financial penalties, additional port fees on ships owned, operated, or flagged by signatory countries
-
“The United States will be moving to levy these remedies against nations that sponsor this European-led neocolonial export of global climate regulations,” members of the Trump Cabinet said in a statement
-
Ten other countries – Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, Sierra Leone, United Arab Emirates, Venezuela, and Yemen – have expressed concerns over the viability of the NZF through a joint submission
The Trump administration has lined up possible sanctions against countries that will sign the International Maritime Organization’s (IMO) Net Zero Framework (NZF), which aims to reduce the negative environmental impact of the global shipping industry.
The IMO is meeting from October 14 to 17 in a special session to consider the adoption of the NZF, which was approved by the Marine Environment Protection Committee in April this year.
READ: IMO approves net-zero rules for shipping
Under the framework, a global fuel intensity (GFI) standard will measure how much greenhouse gas is emitted for each unit of energy used, which ocean vessels must reduce over a specified period. Ships that operate above the GFI will be required to pay for their excess emissions while those with zero or near-zero emission are qualified to claim financial compensation.
“The Administration unequivocally rejects this proposal before the IMO and will not tolerate any action that increases costs for our citizens, energy providers, shipping companies and their customers, or tourists,” the US government under President Donald Trump said in a statement.
“The economic impacts from this measure could be disastrous, with some estimates forecasting global shipping costs increasing as much as 10% or more,” reads the statement signed jointly by Secretary of State Marco Rubio, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy.
Among the actions being considered by the US are:
- Regulations on flagged countries and blocking vessels registered in those countries from US ports;
- Imposing visa restrictions and higher fees for maritime crew members;
- Commercial penalties stemming from US government contracts and/or other financial penalties on ships flagged under nations in favor of the NZF;
- Imposing additional port fees on ships owned, operated, or flagged by countries supporting the NZF; and
- Sanctions on officials sponsoring activist-driven climate policies.
“The United States will be moving to levy these remedies against nations that sponsor this European-led neocolonial export of global climate regulations,” the American officials said.
The International Marine Contractors Association (IMCA), an international trade association for the marine contracting industry, said in a news release that the Net Zero Fund will bring revenues of up to $15 billion.
“Among the key issues to be resolved is how the revenues collected will be distributed and according to what criteria,” IMCA said.
If adopted, the NZF will be incorporated as a new Chapter 5 in Annex VI of the International Convention for the Prevention of Pollution from Ships (the MARPOL Convention), and will enter into force in March 2027 and take effect by January 2028.
At least 72 or two-thirds of the 108 signatories to MAPRPOL Annex VI is needed to adopt the NZF. IMCA said this represents at least 50% of the global gross tonnage.
Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, Sierra Leone, United Arab Emirates, Venezuela, and Yemen have expressed concerns over the viability of the NZF through a joint submission.
READ: Shipping industry prepares for huge investments in decarbonization
