By Enes Tunagur and Jonathan Saul
LONDON -A majority of countries at the U.N. shipping agency voted on Friday 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 U.S. 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 (IMO).
The Trump administration is looking to boost U.S. economic might, including by taking a bigger role in global shipping, and has used tariffs as a weapon to extract better terms from Washington’s trade partners.
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.
U.S. 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.
The IMO struck a preliminary deal to charge the global shipping industry for emissions in April after the U.S. pulled out of associated talks, prompting Washington to threaten
to use visa restrictions and sanctions on countries that voted in favour.
The IMO, which comprises 176 member countries, is responsible for regulating the safety and security of international shipping and preventing pollution.
“Let’s not celebrate. There are concerns we need to address,” IMO Secretary-General Arsenio Dominguez told delegates in closing remarks.
Global shipping accounts for nearly 3% of the world’s CO2 emissions. About 90% of the world’s trade is conducted by sea, and emissions are set to soar without an agreed mechanism.
(Reporting by Enes Tunagur and Jonathan Saul; Editing by Peter Graff and Emelia Sithole-Matarise)
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