No climate deal IMO
The IMO has delayed adoption of its Net-Zero Framework for shipping by a year after threats from the US frustrated the landmark climate agreement.
The International Maritime Organisation (IMO) has delayed the adoption of its long-awaited Net-Zero Framework (NZF) for shipping by a year, following fierce opposition from the US and several oil-producing countries. The decision was taken on Friday, 17 October, at an extraordinary session of the Marine Environment Protection Committee (MEPC) at IMO headquarters in London.
The NZF would have introduced the first global carbon pricing mechanism for international shipping and binding greenhouse gas (GHG) reduction targets for ocean-going vessels over 5,000 tonnes. A majority of member states had approved the plan in principle earlier this year. However, during Friday’s vote, 57 countries supported the postponement, 49 opposed and 21 abstained, delaying the planned entry into force of the framework, originally scheduled for March 2027, by at least a year.
According to diplomatic sources, the postponement was due to intense lobbying by Washington, which threatened possible consequences for countries that supported the plan. US President Donald Trump has publicly called the proposal a “scam tax on shipping”, promising that the US would not accept “this kind of green tax”. Along with Saudi Arabia, the US also sought to change the decision-making process to require explicit approval, a move that could have created further procedural hurdles.
Global scope and delayed timetable
IMO’s Net-Zero Framework is part of the UN agency’s 2023 GHG strategy, which aims to achieve net-zero emissions from shipping by 2050. It includes two key measures: a global fuel standard and a pricing mechanism.
The fuel standard would require ships to reduce the carbon intensity of their fuels throughout the supply chain – a “well-to-wake” approach that includes extraction, production and combustion. The pricing mechanism would set fixed costs for GHG emissions, reward ships that use zero- or near-zero emission fuels and allow trading of surplus emission allowances.
If adopted, the regulations would have applied to all ocean-going vessels over 5,000 gross tonnes – which account for more than 85% of global maritime emissions – and come into force in March 2027. Following the postponement, the MEPC will meet again in October 2026 to continue negotiations.
Disappointment across the industry
The decision to postpone was met with great disappointment across the maritime sector. Sotiris Raptis, secretary-general of the European Community Shipowners’ Associations (ECSA), called the outcome “regrettable” and warned that it undermines investment security for clean fuel production. The International Chamber of Shipping (ICS) said the industry “needs clarity” to commit to investment in decarbonisation.
Patrick Verhoeven, managing director of the International Association of Ports and Harbors (IAPH), said the delay “brings uncertainty about the incentives needed to introduce low-carbon and zero-carbon fuels”, adding that it risks further fragmentation of regulatory frameworks. The Royal Association of Netherlands Shipowners (KVNR) warned that the delay increases the likelihood of further expansion of regional measures such as the EU Emissions Trading Scheme (ETS), weakening the case for a unified global regime.
Source: World Cargo News
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