Divided EU urged to sink its green shipping plan amid US pressure

Divided EU urged to sink its green shipping plan amid US pressure

EURACTIV — 2026-02-05

News from Brussels

The head of the International Maritime Organization (IMO) has urged the European Commission to soften its stance over a global green shipping deal, arguing that a compromise acceptable to all sides – including US President Donald Trump – is needed to keep talks alive.

Arsenio Dominguez, secretary-general of the London-based maritime regulator, visited the European Commission this week to press officials to reconsider their position before negotiations resume in April. That means watering down the deal that was considered a global climate breakthrough, according to two officials briefed on private conversations.

Last October, talks on a global agreement to steer the shipping industry towards net-zero emissions, including penalties for the most polluting fuels, collapsed after Washington threatened sanctions against countries backing the provisionally agreed stance.

EU countries had initially supported a draft deal with relatively stringent environmental standards. But defections by Greece and Cyprus weakened the bloc’s hand and contributed to the deal’s failure, frustrating climate advocates and higher-ambition countries.

Dominguez, a Panamanian official, met MEPs from the European Parliament’s transport and environment committees, as well as senior officials responsible for maritime and climate policy, including Magda Kopczyńska, director-general of DG MOVE, and Kurt Vandenberghe, head of DG CLIMA.

These discussions included considering efforts to find consensus on the pathway to the decarbonisation of international shipping,” an IMO spokesperson told Euractiv.

His visit comes as the EU remains split over how far to push. Greece – whose powerful shipping sector accounts for about 8% of GDP – wants negotiations reopened to give liquefied natural gas more favourable treatment, a stance shared by the US and other petrostates. 

On the other side, Denmark, home to shipping giant Maersk, is backing the existing deal negotiated at the height of the EU’s Green Deal push, which favours biofuels over LNG. China is seen as tentatively supportive of that approach. France, once aligned with Denmark, is now reassessing its position.

CLIMA vs MOVE

EU climate officials – among the last defenders of the Green Deal-era approach amid industry pressure – oppose reopening the file, two officials familiar with the matter said. Their reluctance stems from the fact that LNG is considered much dirtier than biofuels.

The worst-case scenario from a climate perspective would be a weak deal at the IMO, which would then be used in Brussels to oppose more robust existing rules,” said Felix Klann of Transport & Environment, an advocacy group.

In 2024, the EU included maritime emissions in its landmark CO₂ pricing scheme, despite strong opposition from the shipping sector. A softer global IMO deal could be used to justify adjustments to the EU’s emissions trading system (ETS), mirroring similar efforts by the aviation industry to avoid carbon pricing by pointing to existing global agreements at the International Civil Aviation Organization.

Faced with the prospect of a watered-down deal at the IMO, climate officials may be tempted to stick to the EU’s existing position at the IMO which would effectively keep the file frozen.

The split has left Wopke Hoekstra, the EU’s Dutch climate commissioner, and Apostolos Tzitzikostas, the Greek transport commissioner, at odds, prompting calls to escalate the issue to EU leaders.

Notably, Dominguez only met with Anna Panagopoulou, Tzitzikostas’ head of office, during his visit to Brussels.

This is not an issue to be resolved between two commissioners – it is a member state issue,” a Commission official said, adding that the matter should be “raised at the level of EU heads of state.”

EU leaders should mandate the Commission to come forward with a new proposal,” the official added.