EU prepares to clash with U.S. again over shipping carbon levy

Water vapor rises from the NRG Energy, Inc. coal-fired W.A. Parish Generating Station in Thompsons, Texas. Photographer: Luke Sharrett/Bloomberg

BRUSSELS/LONDON - European Union countries agreed on Friday to keep pushing for a global price on shipping’s CO2 emissions in UN talks next week, setting up another potential clash with the United States over the proposal.

Governments at the International Maritime Organization decided last year to postpone the climate plan by a year, after the Trump administration strongly opposed the measure and threatened to impose sanctions and visa restrictions on delegates who supported it.

That has not stopped European countries attempting to revive the plan, according to the EU’s negotiating position for next week’s IMO talks, seen by Reuters.

EU countries “shall oppose any attempts” to remove the climate measures from being negotiated at the meeting, the document said.

EU countries will consider changes to the original carbon pricing plan if this helps gather support, the document said. However, some EU officials said they were pessimistic any compromise deal on climate measures could pass, given the firm opposition from the U.S.

A total of 57 countries - among them, China and major shipping states including Liberia - voted to delay the carbon price at the meeting in October, versus 49 who sought to land a deal.

The supporters included European nations, Brazil and some small island countries vulnerable to climate change.

A coalition of the world’s top three ship registries, Liberia, Panama and the Marshall Islands, plus oil tanker companies including Saudi Arabia’s Bahri urged IMO members to consider alternatives to the original carbon pricing plan when they meet next week.

“Support for the framework in its current form has continued to erode” since the IMO meeting last year, they said in a statement.

The IMO decision last year split the EU, as Greece and Cyprus - each home to major shipping industries - broke ranks with the bloc and abstained in the vote, rather than supporting the EU-backed climate proposal.

Greece, Malta and Italy declined to endorse the new EU negotiating position, which was passed by a reinforced majority of EU countries, officials said.

Reporting by Kate Abnett and Jonathan Saul; Editing by Kirsten Donovan.