Green Shipping Debate Heats Up: US Opposes, India Stands for Transition

US President Donald Trump has urged nations to reject what he calls the world’s “first global carbon tax,” aimed at reducing shipping pollution and steering the maritime industry toward greener fuels. Posting on Truth Social, Trump said, “The United States will NOT stand for this Global Green New Scam Tax on Shipping,” ahead of a key vote by the International Maritime Organization (IMO) in London. The IMO, a UN agency overseeing maritime safety and pollution, is considering a Net-Zero Framework (NZF) that would levy a global tax on shipping emissions and aim for net-zero by 2050.

Shipping accounts for nearly three per cent of global greenhouse gas emissions and contributes to other environmental harms, including oil and chemical spills, ocean acidification, noise pollution, and ship strikes that endanger whales, dolphins, and marine ecosystems.

India, despite facing high costs for retrofitting older ships, $5–30 million for dual-fuel engines or $20–50 million for zero-emission conversions, has supported the draft proposal. Its stance is strategic: to ensure fairness for developing nations, access financial and technological support, protect trade competitiveness, and gain opportunities in green shipbuilding and retrofitting.

The IMO framework sets 2028 as a milestone for implementing a global fuel standard and carbon pricing mechanism. Experts note that ships will not be fully green by then, but the transition will include wind-assisted propulsion, dual-fuel engines, efficiency upgrades, and pilot green corridors. Developed nations with modern fleets will adapt faster, while developing countries such as India, Bangladesh, and Nigeria will face higher financial burdens.

Wind-assisted technologies, dual-fuel engines, hull modifications, and propeller optimization are already being deployed, but widespread retrofitting remains expensive. US Secretary of State Marco Rubio echoed Trump’s opposition, warning that the NZF could harm the economy and raising the possibility of sanctions against countries supporting the measure.

Under President Joe Biden, the US did not formally oppose the NZF, highlighting the contrast with Trump’s administration. Historically, IMO discussions on shipping emissions have been ongoing for over a decade, with debates over carbon pricing, timelines, technology standards, and fairness for developing nations.

Trump has long criticized global climate policies, dismissing renewable energy initiatives, while India’s engagement is pragmatic balancing environmental responsibility, trade interests, economic realities, and protection of marine ecosystems threatened by conventional shipping.