Shipping’s Carbon Charge Gains Momentum Amid Hopes for US Support

By Jack Wittels
Apr 7, 2025 (Bloomberg) – This week, global leaders are convening in London to discuss a groundbreaking carbon charge for the shipping sector. There’s a sense of cautious optimism among observers that, despite recent silence from the U.S. regarding new regulations, Washington won’t hinder progress. Though, with the Trump administration’s announcement to withdraw from the Paris climate agreement on his first day back in office, uncertainty looms over how the U.S. will engage as delegates aim to establish new international rules aimed at slashing greenhouse gas emissions.

While specifics of these regulations remain under discussion, the goal is clear: achieving net-zero emissions for shipping by mid-century—a target set by the International Maritime Association (IMO), which is leading these talks. Currently,this industry relies heavily on fossil fuels and contributes millions of tons of greenhouse gases daily.

Jan Dieleman, president of Cargill Inc.’s ocean transportation division, emphasized how significant this meeting is for shipping’s future. “Shipping has transitioned from being sidelined during Paris discussions due to its complex nature to now having a viable path toward net-zero emissions,” he noted.

In 2023, the IMO committed to developing rules that would encompass both technical and economic strategies for reaching its climate objectives. Sence then, various meetings have taken place where proposals like an emissions pricing system and targets for greenhouse gas fuel intensity have been discussed.

U.S. Position

The United States wields considerable diplomatic power but faces limitations within IMO negotiations due to its relatively small merchant fleet size and shipping’s inherently global character—making it difficult for any single nation to disrupt international agreements.

Jesse Fahnestock from the Global Maritime Forum pointed out that if U.S. representatives disagree with proposed measures, it likely indicates other nations such as China or Brazil share similar sentiments—possibly stalling consensus altogether.

“In a scenario where no agreement can be reached,” he added cautiously, “a vote could push through measures that some countries might reject entirely.” This could lead nations opting out of MARPOL Annex VI—the primary treaty aimed at reducing air pollution from ships.

The IMO refrained from commenting on individual member states’ positions while officials at the U.S. state Department chose not to provide insights either.

Mandatory Regulations Ahead

Despite having ratified MARPOL Annex VI previously, Tore Longva from DNV noted that countries can withdraw from specific annexes or even entire conventions if they choose not to comply with new regulations being proposed during negotiations.

Still, there remains hope among participants that an agreement will materialize soon enough. “This would mark a historic moment as we introduce binding measures across an entire industry aimed at transitioning towards low-carbon fuels,” stated Arsenio Dominguez of IMO Secretary General’s office confidently. “These aren’t just lofty goals; they’ll become mandatory standards for all ships operating worldwide.”

for more insights into how oil-dependent shipping is working towards sustainability efforts: QuickTake
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