A majority of countries at the U.N. International Maritime Organization (IMO) voted to delay by one year a decision on a global carbon price for international shipping, after failing to reach consensus under US pressure.

The move was a setback for the European Union and countries such as Brazil that have pushed for a carbon pricing mechanism to decarbonize the shipping industry. Washington and Riyadh, the world’s largest oil producers, opposed the measure during talks in London.

Saudi Arabia proposed the one-year deferral, which passed with 57 votes in favor and 49 against. China supported the delay, while Greece, Cyprus, Japan, and South Korea abstained. Even with future agreement, the IMO had planned for ships to start paying for emissions only from 2028.

Maersk called the decision a loss of momentum, while environmental group Transport and Environment said the delay leaves the sector drifting in uncertainty. Global shipping produces nearly 3% of global CO₂ emissions.