ISWG-GHG 22 talks advance shipping’s Net-Zero Framework despite carbon pricing divide

September 7 ------ Countries have moved closer to finalizing a global Net-Zero Framework (NZF) for international shipping, including a proposed carbon-pricing mechanism that would be the first of its kind to apply globally to an international industry.

The latest progress came during technical negotiations at the International Maritime Organization (IMO) during ISWG-GHG (1–4 September) in London. The NZF will remain the basis for further negotiations later this year, with discussions centered on its core elements, including an estimated $10–15 billion in annual revenues, measures to reduce the carbon intensity of shipping fuels and commitments aligned with the IMO’s 2023 Revised Strategy.

Thirty-eight countries that spoke during the talks explicitly backed the carbon-pricing and revenue provisions included in the framework. However, 17 countries, mainly oil-producing states, opposed the mechanism, citing concerns over its potential economic costs.

Supporters argue that putting a price on shipping emissions is essential to drive the industry’s transition to cleaner fuels and technologies while helping protect developing economies from the economic impacts of decarbonisation.

The negotiations come as global shipping faces growing disruption from geopolitical conflicts and climate-related droughts affecting key trade routes and waterways. Failure to reach agreement on a global framework could accelerate the development of separate national and regional regulations, with measures already emerging in the EU, the UK and Africa. Industry experts have warned that such a regulatory patchwork could increase uncertainty, delay investment and raise compliance costs for shipping companies operating across multiple jurisdictions.

Industry warns against regulatory fragmentation as support builds for Net-Zero Framework

Em Fenton, Senior Director, Opportunity Green, said: “These negotiations demonstrated a strong spirit of solidarity in the face of blatant attempts to undermine the credibility, ambition and equity of a hard-fought multilateral agreement. Time and again member states have shown that compromise does not mean abandoning the principle of justice in the maritime transition. They must maintain this same integrity when negotiations resume later this year.”

Furthermore, the Clean Shipping Coalition welcomed broad support by member states for the Net-Zero Framework (NZF) but criticized attempts by a minority of states to undermine it with ‘alternative proposals’ and called for its adoption at December’s Marine Environment Protect Committee. "The Net-Zero framework remains intact, despite pressure from a minority of detractors seeking to undermine climate action by the shipping sector, and must be adopted without further delay. Alternative proposals to the Framework are neither necessary nor useful – the IMO has already committed to a strategy, approved a regulatory framework that can deliver it, and scheduled its adoption for later in the year," said Lukas Leppert, President, Clean Shipping Coalition, highlighting that the NZF ‘as is’ includes all the critically necessary elements required for the decarbonisation of the sector.

In addition, Jamie Yates, Climate & Renewable Energy Manager, Pacific Environment, commented that this week’s debate demonstrated a clear commitment among member states to come to an agreement by the end of this year.

There were differing views on the details, but no clear majority shift towards any of the alternative proposals, leaving the Net-Zero Framework as the most robust and viable option under consideration. "We urge adoption as soon as possible and continued commitment to advancing a just and equitable maritime transition. The opponents are few but powerful, and progressive countries must remember that any backsliding on ambition at this stage would only invite further delay and confusion," said Yates.

Jesse Fahnestock, Director of Decarbonisation at the Global Maritime Forum, said the intersessional working group had seen IMO member states signal a continued willingness to find common ground while preserving the integrity of the 2023 GHG Strategy. He further urged Member States to consider what delivering on that commitment would require, including ambition levels capable of underpinning long-term investment in a zero-emission future that leaves no country behind.

Dr. Dola Oluteye, Senior Fellow at the University College London Energy Institute and Founder of the Professional African Technical Network Advisory (PATNA), said: “This week showed a shared understanding among most countries in the room that without revenues, there can be no compromise.”

The political will is here, and high-ambition African countries are proposing a clear way to manage and disburse the future fund, so that the Net-Zero Framework can be adopted later this year. This is critical for not only the future prosperity of global shipping but also for many African countries dependent on just and equitable transition.

The NZF was initially agreed in April 2025, but its adoption was postponed several months later following a closely contested vote, with 57 countries supporting a delay and 49 opposing it, amid strong pressure from the United States and Saudi Arabia.

The framework is intended to provide the regulatory foundation for shipping to meet the targets set out in the IMO’s 2023 Revised Strategy, including achieving net-zero greenhouse gas emissions from international shipping by 2050 while supporting a just and equitable transition.

Source: safety4sea.com