Commodities April 24, 2026 11:20 AM

EU to Press for Shipping Carbon Price at IMO Talks, Setting Up Fresh Rift with U.S.

Brussels doubles down on carbon levy push as divisions persist among member states and international registries seek alternatives

By Derek Hwang
EU to Press for Shipping Carbon Price at IMO Talks, Setting Up Fresh Rift with U.S.

European Union governments have resolved to continue advocating for a global price on CO2 emissions from shipping at upcoming International Maritime Organization (IMO) negotiations, a move likely to reignite tensions with the United States. The EU negotiating mandate instructs member states to resist efforts to remove climate measures from the agenda while remaining open to adjustments intended to broaden support. Deep divisions remain within the EU and across the international shipping community after last year’s vote to delay the plan.

Key Points

  • EU countries have agreed to press for a global shipping CO2 price at next week’s IMO talks while resisting efforts to remove climate measures from the agenda - sectors affected include shipping, energy and maritime services.
  • The EU negotiating position allows for modifications to the original carbon pricing plan to attract wider support, signalling flexibility but not surrender on the goal of pricing emissions - this impacts shipping registries and oil tanker operations.
  • International divisions remain: 57 countries voted to delay the plan at the October meeting, while 49 voted to finalise it, and several EU members abstained or declined to back the new EU negotiating text - this has implications for shipping markets and regulatory risk.

European Union countries have agreed to renew efforts to secure a global carbon price on shipping’s CO2 emissions at next week’s International Maritime Organization (IMO) talks, a step that sets up another potential confrontation with the United States over the measure.

Governments at the IMO had deferred the climate plan last year after strong opposition from the U.S. administration at the time, which warned it could impose sanctions and visa restrictions on delegates who backed the proposal. Despite that resistance, EU negotiators are pressing to keep the carbon pricing measure on the agenda for the upcoming meeting.

In language adopted by EU governments for the forthcoming negotiations, the bloc instructs its delegations to "oppose any attempts" to take the climate measures off the table. The document also states that EU countries will weigh amendments to the original carbon pricing framework if doing so helps to build a wider coalition of support.

However, several EU officials say they are pessimistic that a compromise acceptable to all parties can be achieved, citing continued and firm opposition from the United States. That stance, officials say, significantly complicates efforts to secure a binding agreement at the IMO.

Norway’s environment minister, Andreas Bjelland Eriksen, said the IMO still has an opportunity to reach a landmark agreement but that negotiators must explore "different approaches" to avoid repeating last year’s outcome. "Also... whether we can do some things already now and potentially postpone other parts of the regulation to a later stage, for example," he added while speaking to journalists.

At the October meeting where the vote to delay the carbon price occurred, 57 countries voted for postponement, including China and key flag states such as Liberia, while 49 countries voted in favour of concluding the measure. Support for the original framework was led by European nations, Brazil and some small island states particularly vulnerable to climate change.

In the run-up to next week’s session, a coalition representing the world’s three largest ship registries - Liberia, Panama and the Marshall Islands - together with oil tanker operators including Saudi Arabia’s Bahri, urged IMO members to examine alternatives to the initial carbon pricing proposal. In a statement they said that "support for the framework in its current form has continued to erode" since last year’s meeting.

The decision at the IMO last year also exposed fractures inside the European Union. Greece and Cyprus, both home to significant shipping industries, broke with the bloc and abstained in the vote instead of backing the EU-backed climate measure. According to EU officials, Greece, Malta and Italy did not endorse the updated EU negotiating position, which was nonetheless adopted by a reinforced majority of member states.

As delegations prepare to reconvene, the outcome remains uncertain. The EU’s approach combines a readiness to defend the inclusion of climate measures on the IMO agenda with a willingness to consider modifications to the carbon pricing proposal to attract broader international support. How far that flexibility will go, and whether it will be sufficient to overcome opposition from powerful registries and the United States, is an open question ahead of the talks.


Contextual note: The information in this article is drawn from the EU negotiating mandate and statements made by officials and stakeholders involved in IMO deliberations.

Risks

  • Firm opposition from the United States could block or significantly weaken any carbon pricing agreement at the IMO, maintaining regulatory uncertainty for shipping and associated fuel markets.
  • Erosion of international support, highlighted by a coalition of major ship registries and tanker companies urging alternatives, increases the likelihood that any final measure will be watered down, affecting the effectiveness of emissions pricing.
  • Splits within the EU, illustrated by abstentions and non-endorsements from member states with large shipping industries, could undermine unified bargaining and reduce the bloc’s leverage in negotiations, raising policy and compliance risks for maritime stakeholders.

More from Commodities

Industry and Farm Groups Press Congress to Allow Year-Round E15 Sales Amid Rising Pump Prices Apr 24, 2026 U.S. and EU Cement Partnership on Critical Minerals to Bolster Supply-Chain Resilience Apr 24, 2026 U.S. and EU Sign Agreement to Cooperate on Critical Minerals Supply Apr 24, 2026 U.S. and EU Unveil Joint Action Plan to Coordinate Trade Measures on Critical Minerals Apr 24, 2026 Colombian President to Visit Caracas for Security Talks with Venezuelan Leader Apr 24, 2026