The EU has indicated it will review its relevant regulations following the potential adoption of the IMO’s proposed carbon tax that aims to reduce global greenhouse gas emissions from the international shipping sector.
Ahead of the IMO’s Marine Environment Protection Committee (MEPC) meeting in London from 14 to 17 October, the European Union reiterated its support for the scheme, defying US threats to take action against IMO members who support the IMO’s Net-Zero Framework.
“The EU supports ambitious global measures at International Maritime Organization (IMO) level with a view to decarbonise the shipping sector, and ensure a global level playing field. The EU views the Net-Zero Framework as a significant milestone and calls for its adoption at IMO next week,” the European Commission said on Sunday.
“After the adoption, the European Commission will review the relevant EU regulations in place,” the EU added.
IMO members are scheduled to vote this week on the Net-Zero Framework proposal, which seeks to curtail carbon dioxide gas emissions globally.
The Marine Environment Protection Committee (MEPC) will meet for its second extraordinary session in person at IMO Headquarters in London from 14 to 17 October 2025.
The discussions will focus on issues related to the IMO Net-Zero Framework.
The IMO Net-Zero Framework comprises a new set of international regulations aimed at reducing greenhouse gas (GHG) emissions from ships. It includes two key elements: a global fuel standard and global GHG emissions pricing mechanism.
A global fuel standard requires ships to gradually reduce how polluting its ship fuel can be (i.e. how much greenhouse gas is emitted for each unit of energy used, across a fuel’s life cycle).
On the other hand, a pricing mechanism with set prices on the GHG ships emit, encourages the industry to lower emissions to comply with the global fuel standard.
The United States on Friday threatened to use visa restrictions, commercial penalties, additional port fees on ships owned, operated, or flagged by countries supporting the framework and sanctions on officials “sponsoring activist-driven climate policies,” to retaliate against nations that back IMO’s proposed carbon tax that aims to reduce global greenhouse gas emissions from the international shipping sector. The envisaged measures include potentially blocking vessels registered in those countries from U.S. ports.
Officials warned they could impose visa restrictions including an increase in fees and processing, mandatory re-interview requirements and/or revisions of quotas for C-1/D maritime crew member visas; commercial penalties stemming from U.S. government contracts including new commercial ships, liquified natural gas terminals and infrastructure, and/or other financial penalties on ships flagged under nations in favor of the NZF; and additional port fees on ships owned, operated, or flagged by countries supporting the framework.
They also threatened they will pursue investigations and consider potential regulations to combat anti-competitive practices from certain flagged countries and potentially block vessels registered in those countries from U.S. ports. They will also evaluate, among other measures under consideration, sanctions on officials sponsoring activist-driven climate policies that would burden American consumers.
“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,” Secretary of State Marco Rubio, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy said in a joint statement.
