A landmark international agreement to cut greenhouse gas emissions from the global shipping industry has been abandoned after the United States and Saudi Arabia successfully blocked its final approval. The collapse of the deal, which was set to make shipping the world’s first industry with internationally mandated emission reduction targets, occurred during a key meeting in London.
The agreement, first reached in April after ten years of negotiations, aimed to impose mandatory fuel standards and introduce measures to reduce the carbon footprint of maritime transport. More than 100 countries had gathered this week to give their final approval, with the regulations scheduled to take effect from 2028, requiring ship owners to use increasingly cleaner fuels or face penalties. This framework was seen as a critical step toward aligning the shipping sector with global climate goals, given its significant contribution to emissions.
However, the proceedings were dramatically halted when Saudi Arabia tabled a motion to adjourn the talks for a year. The chairman of the International Maritime Organisation (IMO) meeting stated that this would prevent the agreement from being approved, as key timelines would need revision. The motion passed by a narrow margin, with support from the US, Russia, and Saudi Arabia, who argued that the deal could lead to increased costs for consumers. This outcome effectively derailed years of diplomatic efforts and left many delegates frustrated.
US President Donald Trump had publicly denounced the plan as a “green scam” and threatened countries with tariffs if they voted in favor. In a post on Truth Social, he emphasized that the US would not tolerate measures raising prices for American consumers. Following the adjournment, US Secretary of State Marco Rubio declared the outcome a “huge win” for the Trump administration, highlighting their aggressive stance against what they perceive as economically damaging climate policies.
The shipping industry, which had broadly supported the deal for providing consistent global standards, expressed disappointment. Thomas Kazakos, secretary-general of the International Chamber of Shipping, stated that the industry needs clarity to make necessary investments in cleaner technologies. Meanwhile, some countries, including the UK and most EU nations, voted to continue the talks, but others like Greece abstained, and island nations such as the Bahamas changed their positions under reported pressure from the US, which they rely on for trade.
Shipping currently accounts for approximately 3% of global greenhouse gas emissions, and this figure is expected to rise as global trade increases. Unlike other sectors, shipping has struggled to reduce emissions due to the lack of cost-effective alternatives to diesel. Without intervention, the IMO had estimated that emissions could grow by 10% to 150% by 2050, underscoring the urgency of regulatory action to mitigate climate change impacts.
The delay now jeopardizes the carefully planned timeline for implementing the regulations by 2028. Blánaid Sheeran of environmental NGO Opportunity Green warned that further delays could undermine years of work and require changes to the agreement text. The collapse raises questions about the future of international climate cooperation and the ability to hold industries accountable, with potential long-term consequences for global emission reduction targets.