A joint statement criticises the proposal as a “global carbon tax on Americans” imposed by an unaccountable UN body, which warns of potential retaliation or remedies against supporting countries if US efforts to oppose the framework are unsuccessful.
The Trump Administration issued a joint statement on 12 August 2025, where it officially declined to support the United Nations International Maritime Organisation’s (IMO) proposed “Net-Zero Framework,” designed to cut greenhouse gas (GHG) emissions in global shipping.
The joint statement was released by Secretary of State Marco Rubio, Secretary of Commerce Howard Lutnick, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy.
The IMO Net-zero Framework is the first in the world to combine mandatory emissions limits and GHG pricing across an entire industry sector. Approved by the Marine Environment Protection Committee during its 83rd session (MEPC 83) from 7–11 April 2025, the measures include a new fuel standard for ships and a global pricing mechanism for emissions.
These measures, set to be formally adopted in October 2025 before entry into force in 2027, will become mandatory for large ocean-going ships over 5,000 gross tonnage, which emit 85% of the total CO2 emissions from international shipping.
Under the draft regulations, ships must progressively lower their annual greenhouse gas fuel intensity (GFI) using a well-to-wake approach, which measures GHG emissions per unit of energy. Ships exceeding GFI thresholds will need to purchase remedial units to offset excess emissions, while those adopting zero or near-zero GHG technologies will receive financial incentives.
The joint statement mentions that “the proposed framework is effectively a global carbon tax on Americans levied by an unaccountable UN organisation. These fuel standards would conveniently benefit China by requiring the use of expensive fuels unavailable a global scale. These standards would also preclude the use of proven technologies that fuel global shipping fleets, including lower emissions options where U.S. industry leads, such as liquified natural gas (LNG) and biofuels. Under this framework, ships will have to pay fees for failing to meet unattainable fuel standards and emissions targets. These fees will drive up energy, transportation, and leisure cruise costs. Even small vessels would incur millions of dollars in fees, directly driving up costs for American consumers. 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.”
The IMO’s 2023 Strategy on GHG Emissions Reduction aims to accelerate the adoption of zero and near-zero GHG fuels, technologies, and energy sources. Proposed targets include a 30% reduction by 2035 and 65% by 2040, compared to 2008 levels. Non-compliant vessels may face penalties, potentially USD 100 per ton, and a carbon credit market will allow efficient vessel operators to sell credits to higher-emission operators.
Over 60 countries, including China, Brazil, and much of the EU, support the amendments, which require approval from two-thirds of the 108 UN states with shipping pollution laws for final adoption in October 2025.
