Countries Supporting IMO NZF Will Face Severe Raft Penalties, US WARNS

The Trump administration has warned countries against supporting the IMO’s Net-Zero Framework (NZF) at the upcoming extraordinary meeting of the Marine Environment Protection Committee (MEPC) on October 14-17. The administration is considering imposing penalties on “yes” voters, which could include blocking vessels, applying visa restrictions, and charging port fees

According to Seatrade Maritime News, “ The current US administration had already made its ‘unequivocal’ rejection of the US net zero plan and threatened retaliation against states voting in Favor of it at the extraordinary meeting of the Marine Environment Protection Committee (MEPC) from 14 – 17 October. However, what form this retaliation would take had remained unclear, and the expectation was that it would be tariffs.

A joint statement by US Secretary of State Marco Rubio, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy, issued on 10 October details a raft of potential measures that directly target shipping and maritime in a similar way to the USTR port fees on China-owned, operated, and built ships that come into force on 14 October.

“President Trump has made it clear that the United States will not accept any international environmental agreement that unduly or unfairly burdens the United States or harms the interests of the American people,” the joint statement said.

“The NZF proposal poses significant risks to the global economy and subjects not just Americans, but all IMO member states to an unsanctioned global tax regime that levies punitive and regressive financial penalties, which could be avoided.”

The NZF will require a two-thirds majority vote in Favor by member states of the IMO at the MEPC meeting next week. The US is attempting to dissuade nations from supporting a global carbon tax and has outlined a series of five measures it is considering against states that vote in Favor.

The joint statement concluded: “The United States will be moving to levy these remedies against nations that sponsor this European-led neo-colonial export of global climate regulations.  We will fight hard to protect our economic interests by imposing costs on countries if they support the NZF.  Our fellow IMO members should be on notice.”

The build-up to the extraordinary meeting of the MEPC has become increasingly fractious over the last month as both member states and industry make their stances clear ahead of the vote. With less than a week to go before the vote on the NZF on 17 October, it remains to be seen how much impact the US threats will have in swaying the decisions of IMO member states.

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