The International Maritime Organization passed the first worldwide carbon tax on ships, drawing immediate rejection from President Trump’s administration.

By yourNEWS Media Newsroom

Member nations of the International Maritime Organization (IMO) convened Friday in London and agreed to establish the world’s first global carbon tax on maritime shipping emissions, setting off sharp divisions between environmental advocates, developing nations, and industrial economies. The United States, under President Donald Trump, refused to participate in the negotiations, calling the deal “blatantly unfair.”

The IMO’s agreement includes a $380-per-metric-ton tax on greenhouse gas emissions up to a certain limit and $100 per ton beyond that. This system, which is expected to begin in 2027, is projected to raise approximately $10 billion annually for a so-called “net zero fund” dedicated to shipping industry energy transitions. The untaxed emissions threshold will phase down in intervals until the sector reaches “net zero” around 2050.

The plan also introduces a new “emissions control area” in the northeastern Atlantic, requiring vessels to adhere to stricter emissions standards in the heavily trafficked route between the United States and Europe.

While the IMO hailed the agreement as a consensus measure, environmental groups said the tax rate was too low to force meaningful reductions in emissions. “By approving a global fuel standard and greenhouse gas pricing mechanism, the International Maritime Organization took a crucial step to reduce climate impacts from shipping,” said Natacha Stamatiou of the Environmental Defense Fund. She added, “Member states must now deliver on strengthening the fuel standard over time to more effectively incentivize the sector’s adoption of zero and near-zero fuels, and to ensure a just and equitable energy transition.”

A bloc of around 60 developing nations, including several island states, demanded that tax revenue be placed in a general climate fund to compensate for climate change damage, rather than being reserved solely for maritime projects. “The developing countries with the greatest need came here and offered a solution,” said Seychelles Minister Antony Derjacques. “How can the other major economies ask us to take a weak deal home to our people, who are suffering as a result of the climate crisis?”

Major shipping nations pushed for a credit-based system to ease the financial impact. Provisions for carbon credit trading will be part of the finalized policy framework. Oil-producing nations such as Saudi Arabia, the UAE, Russia, and Venezuela objected outright to the tax structure.

The United States did not attend the IMO session. In a strongly worded letter sent Wednesday, the Trump administration rejected the agreement. “President Trump has made it clear that the U.S. will not accept any international environmental agreement that unduly or unfairly burdens the U.S. or the interest of the American people,” the letter stated.

“Accordingly, we must be clear the U.S. rejects any and all efforts to impose economic measures against its ships based on GHG emissions or fuel choice,” it continued. “Should such a blatantly unfair measure go forward, our government will consider reciprocal measures so as to offset any fees charged to U.S. ships and compensate the American people for any other economic harm from any adopted GHG emissions measures.”

Cargo ships currently produce an estimated 3% of global industrial carbon emissions. Critics say the new IMO carbon tax could eventually lead to cost increases across global supply chains. Proponents argue it lays a foundational framework for reducing the carbon footprint of international trade.