The vote on the proposed Net Zero Framework (NZF) was tabled for Friday (17 October), but was pushed back 12 months after a motion was put forward by Singapore and Saudi Arabia.

It came after the countries, as well the US and Liberia, argued more time was needed to reach a consensus.

The US and Saudi Arabia, in particular, have opposed the idea of a global carbon levy, describing it as an unfair green tax. President Donald Trump has called it a “global green new scam tax on shipping.”

President Trump wrote on Truth Social, “We will not tolerate increased prices on American customers or the creation of a green new scam bureaucracy to spend your money on their green dreams.”

In total, 57 countries voted in favour of the delay, while 49 opposed, with 21 abstentions.

The carbon levy forms a central part of the IMO’s proposed Net-Zero Framework (NZF), applying to ships above 5,000 tonnes from 2028, in a sector that accounts for nearly 3% of global CO2 emissions.

The measure is designed to impose a fee based on the amount of greenhouse gases emitted and to reward vessels that use cleaner fuels by reducing or exempting their payments.

First approved in draft form in April 2025, revenues from the levy would feed an IMO Net Zero Fund to support green fuels, infrastructure, and equitable transition, particularly in developing nations.

The EU, UK, and a bloc of Pacific Island states have backed the measure, calling it a vital step toward decarbonising shipping and a clear market signal for low-carbon fuel investment.

However, some opponents suggest the compliance costs could fall disproportionately on smaller flag states, shipping operators, and consumers.

They’ve also warned that the new levy might collide with or undermine existing regional schemes like the EU’s FuelEU Maritime and Emissions Trading System.

A successful vote would represent a breakthrough for hydrogen producers and maritime fuel developers, as a global carbon levy would raise the operating cost of traditional marine fuels.

It could help de-risk early hydrogen and derivative projects by providing access to grant funding and demand certainty.