Global carbon tax blocked after US opposition

Plans to introduce the world’s first global carbon tax on shipping have collapsed after strong opposition from the United States.

The measure, which was set to be finalized this week, aimed to make the shipping industry pay for its greenhouse gas emissions and generate billions of dollars annually to support climate action in vulnerable nations.  

The proposal had been developed under the International Maritime Organization (IMO) and was widely seen as a breakthrough in global climate policy. Supporters argued that a universal levy on shipping emissions would not only curb pollution but also provide a steady stream of funding for countries most affected by rising seas and extreme weather.  

However, the deal was derailed when the U.S. threatened to impose tariffs and sanctions if the tax went ahead. Washington’s intervention shocked negotiators, who had believed consensus was within reach after years of debate. Critics say the move undermines international cooperation at a time when urgent action is needed to meet climate targets.  

The collapse of the agreement is being described as a major setback for climate diplomacy. Analysts warn that without a global mechanism to regulate shipping emissions, efforts to limit warming to 1.5 degrees celsius will become even more difficult.  

Despite the setback, several countries, including members of the European Union and small island states, have vowed to continue pushing for carbon pricing in shipping. They argue that the industry, which accounts for nearly 3 percent of global emissions, cannot remain exempt from climate responsibilities.