Negotiators reconvened at the International Maritime Organization in London on Monday, reviving a carbon‑pricing scheme for vessels over 5,000 tons that was provisionally agreed in April 2023. The framework, designed to raise up to $15bn annually from 2030, aims to steer the shipping sector—responsible for roughly 80% of global trade—toward low‑carbon fuels. If adopted, the United Nations would manage the fund for alternative‑fuel research.

U.S. and Saudi delegations remain entrenched, rejecting the proposal and arguing that the United Nations lacks authority to manage the proposed fund. Washington’s State Department labeled the plan a “dead end,” warning that a global tax would burden American consumers and domestic energy firms. Panama and Liberia, two leading flag states, appear to side with the U.S., threatening broader implementation.

European nations, Brazil, Norway, Mexico, Kenya and Vanuatu’s minister have pledged support, insisting the carbon price is essential to meet scientific targets. Shipping firms prefer a single global mechanism over fragmented regional schemes, especially as the EU and UK ETS start covering vessels this year. The vote will decide whether the industry faces a unified levy or a patchwork of national rules.