Overview

• On August 12, Secretaries Rubio, Lutnick, Wright and Duffy issued a joint statement formally rejecting the International Maritime Organization’s Net-Zero Framework as a burden on U.S. consumers and industry.
• They argued that the proposal’s fuel standards would benefit China and bar lower-emission technologies where U.S. firms lead, including liquefied natural gas and biofuels.
• The secretaries warned that tiered fees of $100 to $380 per excess ton of carbon dioxide would drive up energy, transportation and cruise costs for American users.
• They called on IMO member states to oppose the framework before its potential October adoption vote and pledged to pursue retaliatory or remedial measures if it is approved.
• The framework, agreed in April by 63 of 176 members, requires a two-thirds majority to pass and is slated to begin phasing in around 2028 under its fee and fuel-standards structure.