US to retaliate against IMO members that back net zero emissions plan

By Lisa Baertlein, Valerie Volcovici and Enes Tunagur

(Reuters) -The U.S. on Tuesday rejected the “Net-Zero Framework” proposal by the International Maritime Organization, which is aimed at reducing global greenhouse gas emissions from the international shipping sector, and threatened measures against countries that support it.

The announcement, made in a joint statement by Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright and Transportation Secretary Sean Duffy, comes ahead of a vote at the United Nations’ shipping agency to adopt the net-zero proposal in October.

It also comes as the Trump administration uses tariffs as a tool to influence the behavior of leaders of other nations, including China, India and Brazil, and as the U.S. withdraws support for regulations aimed at curbing climate change.

“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 statement said.

“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,” it continued.

The U.S., one of 176 IMO member states, exited IMO talks on the net-zero framework in April and urged other IMO members in a memo seen by Reuters to reconsider their support for it.

Member states of the IMO agreed on the net-zero framework in April following a vote that required a simple majority, 63 member states including China, Brazil and EU countries voted in favour, while only 16 states voted against.

In October, a vote would require a two-thirds majority of 108 member states that ratified the key legislation aiming to reduce shipping pollution. IMO only resorts to voting if there is no agreement on a regulation among member states.

Ocean vessels transport around 80% of world trade and account for nearly 3% of the world’s carbon dioxide emissions. The industry is under pressure from environmentalists and investors to deliver more concrete climate action, including a carbon levy.

Many large ocean shipping companies already have committed to net-zero operations by 2050.

Several industry groups that represent them support the legislation, even as members call for incentives, including levying fees on polluting fossil fuels to help offset the higher cost of green fuels.

The World Shipping Council, which represents major firms like container carrier Maersk and car carrier

Wallenius Wilhelmsen, declined comment.

President Donald Trump has also said he is withdrawing the United States from the Paris climate agreement, which set a goal for countries to achieve net-zero emissions by 2050.

The U.S. is currently engaging in UN negotiations to secure a global treaty to reduce plastic pollution and has warned countries in a memo that it will not support a pact that sets caps on plastic pollution and bans the use of certain chemicals.

(Reporting by Valerie Volcovici in Washington, Lisa Baertlein in Los Angeles, Ryan Patrick Jones and Bhargav Acharya in Toronto; Editing by Jasper Ward and Marguerita Choy)

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