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This week, climate diplomacy ran into a Trump-sized iceberg. Nations were set to decide on landmark regulations to make vessels start paying for their greenhouse gas emissions. On Friday, the International Maritime Organization voted to postpone the decision for a year. 

Today’s newsletter breaks down the breakdown in shipping talks. Plus, we visit the world’s biggest Arctic confab.

US helps delay shipping levy in ‘war’ on multilateralism 

By Akshat Rathi

Under immense pressure from the US, countries at a meeting of the International Maritime Organization in London on Friday agreed to postpone a vote that would have made the shipping industry pay for planet-warming pollution.

A container ship at the Port of Los Angeles on Aug. 15.  Photographer: Tim Rue/Bloomberg

The carbon pricing regulations were first agreed on by the vast majority of countries at a meeting in April, but President Donald Trump’s administration pushed hard to get countries to vote against the measure going into effect at the October meeting. That included threats to levy tariffs and to delay visas for maritime crew.

Discussions on the issue went as high as US Secretary of State Marco Rubio, said a person familiar with the matter, who requested anonymity to discuss private details. The night before the vote, Trump wrote on his social-media platform Truth Social that the US will not “stand for this Global Green New Scam Tax on Shipping” and urged countries to “vote NO in London tomorrow.”

“We’re not having climate negotiations here, we’re having geopolitical negotiations,” Faig Abbasov, director of shipping at think tank Transport & Environment, said on the sidelines of the talks. “The United States is waging war against multilateralism, UN diplomacy and climate diplomacy, at this meeting now, inside the building and outside the building.”

Countries at the IMO failing to adopt the carbon charge will further sour the moods of negotiators heading into the UN climate summit COP30, happening in Brazil in November. All countries are expected to submit new climate plans going out to 2035, but so far those plans have mostly disappointed.

COP30 is aimed at delivering on the goals of the Paris Agreement to keep global temperatures from rising beyond 2C compared to preindustrial levels. While the agreement accounts for the vast majority of global greenhouse-gas emissions, it leaves out those coming from shipping and aviation beyond territorial boundaries. That means, without the support of IMO, the world will fail to halt global temperature rise.

The IMO’s net-zero framework had been carefully designed after years of inputs from all major countries, including from the US under former President Joe Biden. Since Trump’s return to the White House, the US has systematically attacked climate policies both at home and abroad. 

“The arguments against the framework are weak. Even if shipping costs were to rise by up to 10%, this would barely affect consumer prices, as shipping typically represents only a small fraction of total product costs,” said Rico Luman, senior economist for transport at the Dutch bank ING. “In contrast, the various direct import tariffs that we’re currently seeing are far more damaging economically.”

Thomas A. Kazakos, secretary general for the International Chamber of Shipping, said the chamber — which represents firms that hold 80% of the world’s shipping fleet — was disappointed by the outcome. “Industry needs clarity to be able to make the investments needed to decarbonize the maritime sector,” he said.

The delay means “that innovation will struggle to scale, inequities will deepen, and the transition to clean shipping will become harder and more costly,” said Natacha Stamatiou, global shipping manager at the Environmental Defense Fund.

The European Union was trying its best to ensure that the carbon levy gets adopted. But the postponement for one year shows “European leadership in international climate talks is not enough,” said Krzysztof Bolesta, Poland’s deputy climate minister. 

Many attendees at the meeting remarked on the hardball approach taken by the US to apply pressure on countries. Norway’s climate minister Andreas Bjelland Eriksen told the Norwegian news site DN that he was “worried” to see the US’s new attitude to global climate diplomacy under Trump. It might be a sign of things to come at the COP30 summit next month. — With assistance from Jack Wittels, Ewa Krukowska, John Ainger and Jennifer A. Dlouhy

Shipping's emissions problem

1.05 billion
The number of tons of greenhouse gases ships are forecast to put in the atmosphere next year. That's equal to Canada and Mexico's emissions combined.

The bigger picture

“A tragedy.”
Al Gore
Former vice president

How Gore framed the Trump administration's energy and climate policies. 

The approach means that “one of the world’s most dynamic economies will be retreating as the low-emissions technologies of the future are implemented and commercialized everywhere else,” he said in September.

One question with...

Our correspondent Danielle Bochove is in Iceland for the Arctic Circle Assembly, an annual meeting bringing together stakeholders from the northern reaches of the planet. She sat down with John Holdren, the co-chair of the Harvard Kennedy School's Arctic initiative who was a science advisor to former President Barack Obama.

She asked Holdren if President Donald Trump’s threats to science have a particular impact on the Arctic. He told her that the administration’s assault on DEI poses a unique threat to studies in the region because of researchers’ close work with Indigenous populations. Here’s his response, edited for brevity:

“What Trump is doing to US science in general, and to climate science in particular, and also to anything that smacks of DEI is having an effect in the Arctic already. One is the participation of federal scientists in these activities has just been terminated.

“There are several impossibilities about work in the Arctic. And one of them is, we have to have international collaboration. The Arctic is too big and too diverse to understand what's going on there without having participation of people from different parts of the Arctic and within the Arctic from different sectors and different cultures. You can't do it without Indigenous participation.”

Worth a listen

Workers prune goji berry bushes under solar panels at the Baofeng Agriculture-Photovoltaic Integration Industrial Base near Yinchuan, Ningxia autonomous region, China, on Sept. 16.  Photographer: Qilai Shen/Bloomberg

There are always big ideas in the climate technology space, but it can be hard to get your head around all the different types of technologies making waves. What’s real and what’s low-carbon smoke and mirrors? This week on Zero, Akshat Rathi teams up with venture capitalist and Catalyst podcast host Shayle Kann to talk about which climate technologies are working, and which are going nowhere.

Listen now, and subscribe on AppleSpotify or YouTube to get new episodes of Zero every Thursday.

Washington diary

The Energy Department’s green bank issued its first loan under Trump. The Loan Programs Office finalized $1.6 billion in financing for an American Electric Power Co. subsidiary to upgrade 5,000 miles of utility transmission lines across five states. The guarantee comes after months of scrutiny of the office for loans issued in the waning days of the Biden administration. 

State attorneys general sued the Trump administration on Wednesday, alleging the Environmental Protection Agency illegally ended its Solar for All program. A group of more than a dozen state AGs accused the agency of violating program agreements and not acting in good faith. The Wisconsin Economic Development Corporation and the governors of Kentucky and Pennsylvania are also among the plaintiffs.

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