More than 180 shipping companies from around the world have called on governments to formally adopt a global emissions pricing system for maritime transport at the UN in the vote to be held at the International Maritime Organization (IMO) in London between October 14 and 17.
The companies are part of the Getting to Zero Coalition, an alliance of more than 200 organizations (including over 180 private companies) from the maritime, energy, infrastructure, and financial sectors, founded in 2019.
Among the commitments made by the coalition is to have commercially viable zero-emission vessels powered by zero-emission fuels in operation by 2030. “Achieving this milestone is essential if we are to meet the shipping industry’s ambitious goal of complete decarbonization by 2050,” they state at Getting to Zero.
Just, Efficient, and Global Transition
In the statement distributed to the media, the organization argues that this global policy called the NetZero Framework is the best way to ensure the clean transition of shipping happens in a “just, efficient, and global” manner, and is a necessary piece for the industry to “fulfill its role” as the backbone of global trade.
The role of South American countries is important. Analysts explain that the region’s vote is decisive for the IMO’s NetZero Framework -which includes the first global emissions pricing system- to be adopted this year (the region was key to the Framework being agreed upon last April).
The approved document, an amendment to the Marpol Annex (International Convention for the Prevention of Pollution from Ships), establishes the first significant global system for a whole-sector carbon pricing and creates the “Net Zero Fund”, through which contributions paid for emissions will be received and managed. The money raised will be allocated to the acquisition of technologies and fuels with zero or near-zero GHG emissions.
Reinvestment
Therefore, the proponents of the initiative highlight that these revenues could be invested in boosting national renewable energy projects and generating growth in many Latin American countries that are well-positioned to become the next renewable energy producers, such as Chile, Colombia, Mexico, and Argentina.
At the time of the vote in April, 63 countries supported the initiative (Poland, Portugal, Spain, the United Kingdom, Switzerland, China, Brazil, Mexico, Chile, Paraguay, Uruguay, India, and Japan, among others); 16 rejected it (mostly oil-producing countries), and 25 abstained (Argentina, Colombia, New Zealand, Australia, Egypt, and Pacific Island states such as Kiribati, Fiji, the Republic of the Marshall Islands, the Solomon Islands, Tonga, Tuvalu, Nauru, Palau, and Vanuatu).
In August, the government of the United States (which did not participate in the discussions) rejected the Framework via a statement.
The Getting to Zero coalition highlights the role of the IMO as a global regulator by stating that the body plays an essential role in guiding the present and future decisions of the shipping industry.
“The IMO has the political legitimacy and the capacity to establish binding regulations, which create fair competitive conditions worldwide,” the statement points out before recalling that in April the body agreed on regulations to guide the transition of maritime transport towards zero emissions, a path that began with the adoption of the Revised Greenhouse Gas Strategy in 2023. “While transforming the sector is a major challenge, doing so under IMO regulation is the best way to ensure a fair, efficient, and globally-reaching process,” they maintain.
On the way
The Coalition says it is fundamental to continue with “constructive negotiations and reach consensus on implementation guidelines” that allow for the fulfillment of the IMO’s strategy, and that success is possible if a firm political will is maintained to adopt the framework in October and refine it over time.
They then state that the industry has already begun the work of transition.
“New ships suitable for alternative fuels are being ordered and the supply chain for these fuels recognizes the maritime sector as a highly relevant new client. From our perspective, not approving the framework would seriously jeopardize this momentum. Prolonged uncertainty could threaten major investments—crucial for the future of global trade,” they add.
Next, they indicate that these investments in new technologies and infrastructure can bring enormous economic benefits to member countries, generating millions of jobs in rapidly growing sectors.
But they warn that each year of inaction only leads to further delays, as it could lead to the dismantling of ongoing projects and force the restart of the planning cycle.
“The absence of global regulatory guidance will increase the long-term costs of the transition, costs that will fall on the industry, countries, and consumers,” they warn in the statement.
And they conclude by stating that maintaining the course around the IMO’s Net Zero Framework is not just an action against climate change, but the IMO’s role as a global regulator is at stake.
“For the shipping sector, multilateralism is not just a noble idea, it is the foundation of credible global regulation that allows the industry to do its job. The IMO’s work on decarbonization has been challenging, but the achievements reached show us that even the greatest challenges can be resolved by working together. As we await its decision in October, we urge Member States to renew that hope, and not to undermine it,” closes the statement from the Getting to Zero Coalition.
What’s next
What is the current status of the IMO’s Net Zero Framework?
The measures included in the NZF are scheduled to be formally adopted during an Extraordinary Session of the MEPC in London, from October 14 to 17 next.
At the April meeting (MEPC 83), the content of the framework was agreed upon; at the extraordinary session, it will be decided whether it is formally adopted and enters into force.
What happens when the Net-Zero Framework is adopted?
Once the NZF is formally adopted, its text can no longer be modified. The adoption triggers what is known as a “tacit acceptance period,” which is expected to last at least ten months. If any party wishes to object to the framework and block its entry into force, it must do so during this period. For an objection to be successful, it would need the support of at least one-third of the Annex VI parties or parties representing more than half of the world’s tonnage.
Assuming there are no objections, the measures included in the framework would enter into force in the spring of 2027. This will allow shipowners to update their Ship Energy Efficiency Management Plans (SEEMP) before the measure takes effect on January 1, 2028. From that date, the regulations will be mandatory for large ocean-going ships over 5000 gross tonnage, which account for 85% of total CO₂ emissions from international shipping.
What will happen if the IMO Net-Zero Framework is not adopted?
Without the regulatory guidance provided by the NZF, the maritime industry will face greater uncertainty about how and when to invest in new ships and fuels. In the long term, this uncertainty will generate additional costs for companies, countries, and consumers.
It is important to note, however, that even if IMO Member States do not adopt and accept the Net-Zero Framework, the IMO’s 2023 GHG Strategy and the underlying imperative for decarbonization will remain in place.
Tags:
maritime sector decarbonizationimointernational maritime organization
