Finance

EU prepares to clash with US again over shipping carbon levy

Published by Global Banking & Finance Review

Posted on April 24, 2026

3 min read

· Last updated: April 25, 2026

Add as preferred source on Google
Russian military advance in eastern Ukraine ahead of Trump-Putin summit - Global Banking & Finance Review
Image depicting the recent Russian military advance into eastern Ukraine near Dobropillia, highlighting the escalating tensions ahead of the Trump-Putin summit. This event is pivotal in the ongoing conflict and impacts geopolitical discussions.
Global Banking & Finance Awards 2026 — Call for Entries

By Kate Abnett and Jonathan Saul BRUSSELS/LONDON, April 24 (Reuters) - European Union countries agreed on Friday to keep pushing for a global price on shipping's CO2 emissions in U.N. talks next week,

EU prepares to clash with US again over shipping carbon levy

EU Pushes for Global Shipping Carbon Pricing Amid US Opposition

By Kate Abnett and Jonathan Saul

Background on the Shipping Carbon Levy Debate

BRUSSELS/LONDON, April 24 (Reuters) - European Union countries agreed on Friday to keep pushing for a global price on shipping's CO2 emissions in U.N. talks next week, setting up another potential clash with the United States over the proposal.

IMO's Previous Decision and US Resistance

Governments at the International Maritime Organization decided last year to postpone the climate plan by a year, after the Trump administration strongly opposed the measure and threatened to impose sanctions and visa restrictions on delegates who supported it.

EU's Renewed Efforts and Negotiating Position

That has not stopped European countries attempting to revive the plan, according to the EU's negotiating position for next week's IMO talks, seen by Reuters.

EU countries "shall oppose any attempts" to remove the climate measures from being negotiated at the meeting, the document said.

Potential for Compromise and Ongoing Challenges

EU countries will consider changes to the original carbon pricing plan if this helps gather support, the document said. However, some EU officials said they were pessimistic any compromise deal on climate measures could pass, given the firm opposition from the U.S..

International Reactions and Stakeholder Positions

Norway's Perspective and Calls for Flexibility

Norway's environment minister Andreas Bjelland Eriksen said that the IMO still had a chance to strike a historic deal, but had to look at "different approaches" to avoid a repeat of last year's failure.

"Also... whether we can do some things already now and potentially postpone other parts of the regulation to a later stage, for example," he added while speaking to journalists.

Voting Dynamics and Global Support

A total of 57 countries - among them, China and major shipping states including Liberia - voted to delay the carbon price at the meeting in October, versus 49 who sought to land a deal.

The supporters included European nations, Brazil and some small island countries vulnerable to climate change.

Industry Response and Alternative Proposals

A coalition of the world’s top three ship registries, Liberia, Panama and the Marshall Islands, plus oil tanker companies including Saudi Arabia’s Bahri urged IMO members to consider alternatives to the original carbon pricing plan when they meet next week.

"Support for the framework in its current form has continued to erode" since the IMO meeting last year, they said in a statement.

EU Internal Divisions and Future Outlook

EU Member States' Diverging Views

The IMO decision last year split the EU, as Greece and Cyprus - each home to major shipping industries - broke ranks with the bloc and abstained in the vote, rather than supporting the EU-backed climate proposal.

Greece, Malta and Italy declined to endorse the new EU negotiating position, which was passed by a reinforced majority of EU countries, officials said.

Conclusion

(Reporting by Kate Abnett and Jonathan Saul, additional reporting by Nerijus Adomaitis in Oslo; Editing by Kirsten Donovan)

Key Takeaways

  • EU to resist any attempts—especially by the US—to remove shipping carbon pricing from IMO talks next week, though compromise options may be considered.
  • The shipping sector faces uncertainty after IMO delayed a 2025 vote on the Net‑Zero Framework to October 2026 amid strong U.S. and oil‑state opposition.
  • Meanwhile, regional measures like the EU ETS and FuelEU Maritime remain in effect, prompting continued green investments despite global delays.

Frequently Asked Questions

Why is the EU pushing for a shipping carbon levy?
The EU seeks to put a global price on shipping's CO2 emissions to combat climate change, aiming for tougher climate measures in international shipping.
What is the US stance on the proposed shipping carbon levy?
The US strongly opposes the shipping carbon levy, previously threatening sanctions and visa restrictions for supporting delegates.
Which countries support or oppose the shipping carbon pricing plan?
Supporters include EU states, Brazil, and small island nations, while China, Liberia, and many major shipping registries oppose or urge alternatives.
How did divisions within the EU affect the IMO vote?
Greece and Cyprus, key shipping nations, abstained from the vote, causing a split within the EU bloc over the climate proposal.
What alternatives are being considered to the original carbon pricing plan?
Major ship registries and tanker companies urge IMO members to consider alternatives to the current EU-backed carbon pricing framework.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category