Trump Admin Threatens to Retaliate Against Backers of IMO Emissions Deal
Two months before IMO is set to approve a hotly-debated agreement to tax excess greenhouse gas emissions - an agreement that has been panned by some climate advocates as "too little, too late" - the Trump administration has pledged to fight the proposal and retaliate against any nations that vote for it.
The compromise carbon deal was agreed at Marine Environment Protection Committee's 83rd meeting, held in April, and it capped 10 years of active debate about IMO's climate ambitions. At that meeting, national delegates agreed to a set of binding targets for shipping's greenhouse gas emissions, along with a set of penalties for emitting. The agreed plan centers on a fee of $380 per tonne of CO2 for exceeding a maximum level of emissions intensity, plus another $100 per tonne for exceeding a baseline level; this marginal tax structure is expected to raise the cost of operations and incentivize uptake of green ships. For an IMO agreement, it was comparatively controversial: 63 nations voted in favor, 16 opposed it and 24 abstained.
Environmental critics of the deal say that it is too lenient, underperforms IMO's stated ambitions, and would not achieve net-zero carbon emissions by 2050. Economic critics argue that it would cost shipping too much, raising prices for goods. All parties agree that if it functions as designed, it would result in emissions reductions from 2030 onwards, and a statistical analysis by T&E suggests it could halve CO2e from global shipping by 2040.
The Trump administration is open in its opposition to emissions regulations, solar power and wind power - three essential requirements for global zero-carbon shipping - and it has previously argued against the IMO's deal. In an updated position statement released Tuesday, the U.S. State Department noted that MEPC's framework is a "global carbon tax," and made it clear that the administration will not accept it.
"The Trump 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. We will fight hard to protect the American people and their economic interests," State said in its statement. "Our fellow IMO members should be on notice that we will look for their support against this action and not hesitate to retaliate or explore remedies for our citizens should this endeavor fail."