The
joint statement said the Trump Administration, “will not tolerate any action
that increases costs for our citizens, energy providers, shipping companies and
their customers, or tourists”.
However, the statement did not merely reject the IMO’s
net zero proposals but also said that the US would retaliate against
nations backing them at the MEPC meeting in October.
“We
will fight hard to protect the American people and their economic interests.
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 endeavour fail.”
There was no mention of what shape retaliation or remedies
might take, but tariffs have very much been the Trump Administration’s weapon
of choice.
The strongly worded rejection of the proposals follows the
US delegation walking out of a vote at extraordinary meeting of the MEPC at the
IMO in April. Despite the US walkout and some member states either abstaining
or voting against the proposals the necessary majority was attained to take the
framework forward to the next meeting in October.
The Trump Administration’s threat of retaliation against
countries backing the proposals will add further difficulties to what was
already expected to be a challenging meeting in October.
In May DNV Maritime CEO Knut Ørbeck-Nilssen, told
a webinar, “Considering that the US withdrew from the whole process, I think it
is still uncertain what will happen in October.”
While
those pushing for net zero targets were critical of the proposals for not
providing enough incentives for the switch green fuels such as ammonia or methanol, the
Trump Administration railed against potentially higher costs for ship owners
and operators using LNG and biofuels with the imposition of what it sees as a
global carbon tax.
“Whatever its stated goals, the proposed framework is
effectively a global carbon tax on Americans levied by an unaccountable UN
organization. These fuel standards would conveniently benefit China by
requiring the use of expensive fuels unavailable at global scale,” the
statement said.
China
is at the forefront of developing alternative fuels. According to the Methanol
Institute when it comes to developing green methanol production China
represents more than half of the total announced capacity to 2030 and in the
near term will provide 75 to 80% up to 2028.
Rubio, Lutnick, and Duffy stated, “These standards would
also preclude the use of proven technologies that fuel global shipping fleets,
including lower emissions options where US 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.”