The United Nations has delayed a vote on imposing the world's first global carbon tax on shipping emissions by one year, following opposition led by the United States and Saudi Arabia. The decision came during an International Maritime Organization session in London, where consensus could not be reached. The Trump administration hailed the postponement as a major victory against what it called an unconstitutional tax.
The International Maritime Organization (IMO), a UN agency regulating shipping, was set to vote on Friday, October 17, 2025, during its Marine Environment Protection Committee session in London on a proposal within the "Net-Zero Framework." This plan, backed by the European Union and Brazil, aimed to impose a carbon tax on carriers exceeding new emissions limits, raising billions for climate adaptation and clean-fuel projects in developing nations. Shipping accounts for nearly 3% of global greenhouse gas emissions, and supporters argued the tax was essential to meet net-zero targets by mid-century.
However, a majority of member nations voted to defer the decision after failing to achieve consensus. Saudi Arabia introduced a motion on Friday to delay discussions for one year, which passed with 57 countries in favor and 49 opposed. The US, under President Donald Trump, led the opposition, with administration officials warning the tax would increase energy, food, and fuel costs worldwide, potentially raising shipping expenses by up to 10%.
President Trump posted on Truth Social: "I am outraged that the International Maritime Organization is voting in London this week to pass a global Carbon Tax... The United States will NOT stand for this Global Green New Scam Tax on Shipping, and will not adhere to it in any way, shape, or form." Secretary of State Marco Rubio wrote on X: "This week, the UN is attempting to pass the first global carbon tax, which will increase energy, food, and fuel costs across the world. We will not allow the UN to tax American citizens and companies." UN Ambassador Mike Waltz described it on Fox News as "a bigger deal than I think anybody realizes."
The Trump administration threatened retaliatory measures against supporting nations, including investigations into anti-competitive practices, visa restrictions, higher port fees, and commercial penalties. A statement warned: "The United States will be moving to levy these remedies against nations that sponsor this European-led neocolonial export of global climate regulations."
IMO Secretary-General Arsenio Dominguez announced: "Now you have one year, you will continue to work on several aspects of these amendments... You have one year to negotiate and talk and come to consensus." Rubio praised the outcome as "another HUGE win for [Trump]," crediting US diplomacy for protecting American interests. Waltz added: "Huge push by [Rubio] and the State Dept team. Strong diplomacy that put American business and consumers first WON THE DAY over an ideological carbon tax from the UN and EU."