Inside Story: Trump’s Battle with Earth

TL/DR –

The Marine Environment Protection Committee of the International Maritime Organization recently saw opposition from the U.S., Russia, and Saudi Arabia on measures to reduce greenhouse gas emissions from the shipping industry. Despite widespread support, the proposal for a global fuel standard and a pricing mechanism for remaining emissions was delayed on the U.S.’s insistence. This latest development spotlights a broader ongoing struggle in global climate politics between fossil fuels and clean energy, with the U.S. under President Trump actively supporting old energy technologies domestically and globally in an attempt to limit China’s dominance in the clean energy sector.

Shipping Industry Stunned by Opposition to Carbon Emission Reduction Measures

Unusual events at the International Maritime Organization’s (IMO) Marine Environment Protection Committee in London this month have drawn widespread attention. The unexpected developments come ahead of the next UN climate conference, COP30, and signal a shift in global climate change politics.

The IMO, a UN agency, oversees shipping safety, security and related pollution prevention. Over a decade, it has been working, albeit at a relaxed pace, to decrease the maritime sector’s greenhouse gas emissions. The maritime sector contributes slightly above 2 per cent to the world’s carbon emissions, and this figure is rising annually.

Recently, the IMO reached an agreement on two measures. The first would introduce a global fuel standard, gradually leading to the use of lesser polluting fuels, and the second provides a pricing mechanism for remaining emissions to encourage further reductions. The revenue from this would be used to make shipping companies more eco-friendly and support developing nations. The global maritime industry and almost all of the IMO’s 176 member states supported the measures.

However, this month, the US, Russia, and Saudi Arabia opposed these measures during a special environment committee meeting convened to ratify the proposal. These nations requested a postponement of the vote. President Donald Trump of the United States openly voiced his opposition, stating on Truth Social, “The United States will NOT stand for this Global Green New Scam Tax on Shipping…”

In a surprising turn of events, US negotiators at the IMO headquarters openly threatened other delegates, cautioning that a vote against the United States would lead to tariffs being imposed on their countries, and they would be denied visas to enter the US. The meeting ended with the postponement of the vote, as the US desired. This was a shock to many who were certain the carbon reduction measures would pass by a significant majority.

The unprecedented events in London have opened a new chapter in the ongoing technological battle between fossil fuels and clean energy that has characterized global climate politics for the last two decades.

Clean Energy vs. Fossil Fuels

In the past decade, clean energy from wind, solar, hydropower, and geothermal sources, along with electric vehicles, heating and cooling systems, battery storage and energy efficiency, have become increasingly dominant. Due to significant cost reductions, renewables are now anticipated to meet over 90 per cent of the growth in global electricity demand in the next five years. Due to this shift, Britain became the first major economy to completely phase out coal-powered generation last year. Also, it is expected that this year or next, renewables will surpass coal as the world’s primary source of electricity.

In 2024, the sales of electric cars exceeded seventeen million globally, representing over a fifth of all cars sold. The market has seen exceptional growth, with 3.5 million more electric cars sold in 2024 than in 2023. Interestingly, almost half of all car sales in China last year were electric cars. Concurrently, the global battery market is advancing rapidly due to rising demand and falling prices.

Furthermore, there is growing political pressure to move away from fossil fuels. COP26 in Glasgow agreed in 2021 that coal-fired power should be “phased down,” and twenty-four countries and several leading car manufacturers announced they would end the sale of petrol-driven vehicles by 2040. Two years later, COP28 agreed that the world needed to transition away from fossil fuels entirely. The official UN press release referred to this as “the beginning of the end of the fossil fuel era.”

The Trump Administration’s stance on Renewable Energy

When President Trump was elected, many were skeptical about his promise to boost the American oil industry and withdraw from the Paris Agreement. However, his tax credits and subsidies for green technology were providing many new jobs, and renewable energy seemed to be cheaper than coal. The prospect of damaging the American economy for the sake of boosting fossil fuels seemed unlikely.

Yet, the reality proved different. President Trump has used the power of the American state to promote fossil fuels instead of supporting new technologies. On his first day in office, he signed an executive order to eliminate electric vehicle mandates. Furthermore, the Environmental Protection Agency is looking to rescind its 2009 finding that greenhouse gases pose a threat to public health. If this happens, vehicle manufacturers will not be required to measure, control or report their greenhouse gas emissions.

His administration has been actively promoting fossil fuels both domestically and overseas, using trade and defense deals to pressure European and Asian countries to buy more American gas. This has resulted in the EU committing to import up to A$1.15 trillion of US energy, most of which is liquefied natural gas, by 2028, which is more than four times its current imports. Similarly, Indonesia has agreed to A$24 billion in US energy imports, and Japan is expected to follow suit. Australia is next on the list.

This strategy has had some effects. Major European car manufacturers including Audi, Volvo, and Porsche, have announced that they are slowing down their shift to electric vehicles, or even abandoning them altogether. Major US banks have also weakened or entirely abandoned their green investment policies, and the 150-stong Global Net Zero Banking Alliance has shut down.

While few analysts believe that the global transition to clean energy can be completely stopped, how far away that transition is remains unclear. With one side now armed with the support of President Trump, the key conflict of global climate policy is set to intensify.

—
Read More US Economic News