London, October 17, 2025 – A historic international effort to curb shipping emissions has collapsed after Saudi Arabia and the United States successfully blocked a landmark agreement at talks in London this week. The deal, first agreed in April, would have made shipping the world’s first industry to adopt internationally mandated targets for reducing emissions.
Over 100 countries had gathered to approve the agreement, which was the culmination of a decade of negotiations. Under the framework, ship owners would have been required to transition to cleaner fuels starting in 2028 or face fines. Shipping currently accounts for about 3% of global emissions, and without intervention, emissions could increase between 10% and 150% by 2050, according to estimates from the International Maritime Organisation (IMO).
The negotiations ended dramatically on Friday when Saudi Arabia introduced a motion to adjourn the talks for a year. The motion passed narrowly, effectively stalling the agreement and delaying key timelines needed for implementation.
U.S. Opposition and Global Pressure
President Trump publicly opposed the deal, labeling it a “green scam” and warning countries that supporting the agreement could result in U.S. tariffs. U.S. Secretary of State Marco Rubio hailed the outcome as a “huge win” for the Trump administration. Other countries, including Russia, Saudi Arabia, and some island nations reliant on U.S. trade, voted to postpone the vote, citing concerns over potential price increases for consumers.
Arsenio Dominguez, Secretary General of the IMO, issued a rare public plea, urging nations not to repeat such delays, highlighting the urgency of climate action in the maritime sector.
Hon. Ralph Regenvanu, Minister for Climate Change of Vanuatu, criticized the delay, calling it “unacceptable given the urgency we face in light of accelerating climate change.”
Industry Reaction
The shipping industry had broadly supported the deal, as it would have provided consistent global standards for emissions reduction. Thomas Kazakos, Secretary-General of the International Chamber of Shipping, expressed disappointment: “Industry needs clarity to be able to make the investments,” he said.
While the UK and most EU nations voted to continue negotiations, some EU members like Greece abstained. Other countries, including China, which had initially supported the April agreement, agreed to delay proceedings.
Implications and Next Steps
The postponed vote casts doubt on the feasibility of implementing regulations by the 2028 timeline. Environmental observers warn that delays could undermine years of negotiations and efforts to reduce emissions in one of the world’s most challenging sectors.
“The delay may require changes to the text of the agreement that could undo years of work,” said Blánaid Sheeran, policy officer at environmental NGO Opportunity Green.
With global trade continuing to expand—over 90% of goods are transported via sea—the shipping industry remains a critical focus for climate action. Experts warn that without decisive measures, emissions from shipping could continue to rise sharply, complicating global efforts to limit warming.