Trump Launches New Offensive to Kill Global Carbon Tax After Delaying It With Tariff Threats
The Trump administration is escalating its campaign against international climate efforts, drafting a diplomatic cable that warns dozens of countries not to adopt a global carbon tax on the shipping industry.
According to a draft State Department memo reviewed by POLITICO’s E&E News, the United States is “strongly opposed” to a proposed fee on ships’ carbon emissions and “will not tolerate” the creation of a climate fund financed by carbon revenue. The administration is also pushing to permanently end a broader U.N. climate package known as the Net-Zero Framework.
The proposal under consideration at the U.N.’s International Maritime Organization, or IMO, would place a fee on ships that fail to meet tightening carbon-intensity standards. Shipping accounts for roughly 3 percent of global greenhouse gas emissions.
Last fall, negotiators were close to voting on the carbon tax. But the vote was delayed after the Trump administration threatened tariffs against countries that supported the measure. Now officials appear determined to stop it entirely.
“The most appropriate path forward is to end consideration of the NZF prior to moving to a new discussion,” the draft cable states. The document was prepared in coordination with the State Department, Department of Energy and other agencies, according to a source familiar with internal deliberations.
The framework aims to reduce shipping emissions to net zero by 2050 by encouraging cleaner fuels. Ships that fail to comply would pay fees that could help fund green energy transitions and assist developing nations.
The administration argues the measure would create “economic burdens” and amount to a global carbon tax. A State Department spokesperson confirmed the U.S. strongly opposes the proposal, saying, “We will fight hard to protect the American people and their economic interests.”
Energy Secretary Chris Wright has criticized the IMO’s 2050 net-zero target as unrealistic, and administration officials have urged the agency to scrap what one official called the “Net Zombie Framework.”
Supporters of the plan argue that a unified global standard would prevent a patchwork of regional regulations, such as the European Union’s emissions trading system, which already covers large ships. Climate advocates warn that blocking the measure could slow investment in cleaner vessels and prolong uncertainty for the shipping industry.
The IMO’s next major meeting is scheduled for April 27, where the future of the carbon tax proposal will again be debated — this time under mounting pressure from Washington.
