The UN's International Maritime Organization (IMO) will decide whether to adopt a carbon emissions pricing scheme for global shipping, a move backed by an EU-led coalition but strongly opposed by the United States, reported Reuters.

The proposal, tabled for adoption at the IMO's environmental committee follows a preliminary deal reached in April. The US withdrew from those talks and has since threatened retaliatory measures, including port fees and visa restrictions.

The US State Department said on October 11 it would target countries supporting what it called a "European-led neocolonial export of global climate regulations." Meanwhile, the European Commission reaffirmed its support for the IMO measure in a statement on October 12.

The draft rules would impose fees on ships over 5,000 tons that exceed emissions thresholds, while rewarding vessels using cleaner fuels. Ships emitting below a separate threshold would receive surplus units.

Vessels must either purchase remedial units or pay penalties if they exceed the emissions limit. Revenues will be collected by a new IMO Net-Zero Fund, though distribution details remain undecided.

Research from University College London estimates the fuel standard could generate US$11 billion to$12 billion annually between 2028 and 2030, with most ships expected to pay penalties in the early years.