The CUS calls on the member states of the European Union, and especially the government of the Republic of Cyprus, to vote against, in order to allow more time for achieving a broader consensus regarding the proposed framework of the International Maritime Organization (IMO).
A framework which is expected to be adopted during the MEPC ES.2 session (October 14-17). In its present form, the NZF constitutes a serious threat to European shipping, the economy and energy security, as well as a serious risk for small and medium-sized enterprises (SMEs), which are the backbone of European shipping, notes the Cyprus Union of Shipowners and adds: “Essentially, it represents a tax of many billions of euros that does not reduce emissions, but transfers the cost to the end consumers, fueling inflation across the entire European Union”.
In particular, the Union records six points – arguments on the basis of which it calls on the E.U. to reject the framework.
Specifically, it states:
The NZF imposes excessive charges, despite the current lack of realistic technologies or infrastructure that would ensure compliance.
It relies on so-called “green” fuels — methanol, ammonia, hydrogen and synthetic LNG — which are not available on an industrial scale and consume more renewable energy in their production than they deliver.
Instead of reducing emissions, the framework diverts critical financial resources from real technological and energy innovation, thereby slowing down the transition to cleaner solutions
Shipping transports over 90% of global trade. Any additional cost imposed on ships will inevitably be passed on to the prices of all goods and services — from food and medicine to raw materials and energy. The result will be widespread price increases, a higher cost of living and an intensification of inflation.
The implementation of the NZF will lead to a supply shortage, at a time when there are no mature or scalable alternative solutions to cover the supply gap. As a result, SMEs, which are the backbone of EU shipping, will face competitive challenges, resulting in a regression of the EU as a whole. Such an outcome would entail:
Europe still depends heavily on LNG imports. Currently, imported LNG reaches Europe at a price that is already more than double the domestic price in the US. Under the NZF, this cost is predicted to increase further, causing an increase in energy prices, further inflationary pressures and a worsening of the energy crisis — with disproportionate impacts on households and industry.
International shipping is the most efficient and environmentally sustainable mode of transport.
Through technological innovation, optimization of operations and continuous investments, the sector has achieved a significant reduction in emissions, despite the increase in transport volume.
Shipping is a pillar of the Cypriot economy and a strategic sector for Europe as a whole.
Cyprus, as an important maritime country, must support European consumers and the creation of a global incentive system for decarbonization, the funds of which will be reinvested, among other things, in the shipping industry, while simultaneously rejecting unjust, inefficient and harmful tax systems of many billions (whether regional or not) without experience or clear procedures regarding how these funds will be used.
The Cyprus Union of Shipowners supports global policies of genuine environmental progress under the auspices of the IMO and, to this end, calls on the Government of the Republic of Cyprus and all EU Member States to vote against the current Net-Zero Framework (NZF), in order to allow more time to achieve consensus among the key stakeholders. Any solution, CUS emphasizes, must be based on research, technological innovation and realistic, scientifically substantiated solutions that protect people, the economy, the environment and the industry, without destroying economies and consumers.
