IMO’s Net-Zero Framework caught in crossfire ahead of pivotal adoption decision

September 17 ------ As the International Maritime Organization (IMO) Member States approach voting on the adoption of the Net-Zero Framework at the extraordinary session of the Marine Environment Protection Committee (MEPC) in October this year, the shipping industry is voicing its support as well as concerns that the net-zero ambitions are at risk.

IMO’s Net-Zero Framework mandates a new fuel standard for ships and a global pricing mechanism for emissions, aiming to address the shipping industry’s transition to zero emissions. The agreement on the framework was reached in April 2025, and IMO Member States are expected to reach a decision on its adoption in the following month. IMO’s Net-Zero Framework sparked debate among industry representatives, with some praising the agreement as “historic,” and others describing it as a “shipwreck” that missed targets.

Members of the Getting to Zero Coalition, an initiative including over 180 companies, have issued a joint statement urging IMO Member States to adopt the framework. “A failure to do so risks significant negative consequences for the shipping industry,” the statement reads.

The coalition highlighted the need for transforming the sector via regulation by the IMO as “the best way to ensure that this happens fairly, efficiently, and globally.” “It is crucial that constructive negotiations continue and that negotiators agree on guidelines for implementation that can deliver on IMO’s strategy. The foundation for success is there if the political will to adopt the framework in October and refine it over time remains firm,” the coalition said.

‘Marry ambition with reality’

On the other hand, the U.S. has fiercely opposed the Net-Zero Framework, calling it “a global carbon tax on Americans levied by an unaccountable UN organization” and vowed to retaliate against countries that support it.

Christopher J. Wiernicki, Chairman and CEO of American Bureau of Shipping (ABS), recently said shipping and the IMO are on different trajectories, with “no clear pathway for green fuel availability and scalability and infrastructure support.” “LNG and biofuels are mission-critical to any success and should not be overlooked, over-penalized or discarded in the Net Zero regulation. Quite frankly, achieving net zero for shipping by 2050 looks like a wildcard,” he stated at the launch of the ‘2025 ABS Sustainability Outlook, Beyond the Horizon: Vision Meets Reality’.

“The industry needs a framework but we need one that marries ambition with reality,” added Wiernicki. “The mechanics need to be thought through. Right now, we are not where we need to be. Emissions remain 121 percent above the 2008 baseline, compliance costs are compounding, and the signals shaping investment – regulation, fuel pricing, penalties, availability, scalability – are moving at different speeds. The IMO needs to take a timeout. We need to get this right.”

ABS’ report shows that, despite progress on carbon intensity, shipping’s absolute emissions continue to climb and highlights the sharply increasing cost of compliance, modelling how a typical vessel trading within the EU could see daily operating costs increase from approximately $15,000 in 2028 to around $45,000 by 2035. It points out that LNG is over-penalized in the early 2030s, although it underpins blue fuels, keeps hard-to-abate segments compliant, and buys time for zero-carbon fuels, provided methane slip is addressed and pathways to bio-/e-LNG are opened, ABS stated.

Source: offshore-energy.biz