Green fuel producers urge IMO to adopt Net-Zero Framework with e-fuel incentives

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Twenty green fuel producers have called on International Maritime Organization (IMO) delegates to adopt the organization’s Net Zero Framework and include specific incentives for green e-fuels ahead of this week’s extraordinary session in London.

The companies, including European Energy, Liquid Wind, ET Fuels, HIF Global, and Zero Waste, said in a letter that the IMO should seize a “once-in-a-generation opportunity” to set shipping on a sustainable pathway.

The IMO’s Net Zero Framework was agreed in April, and delegates are expected to vote on its adoption on Thursday or Friday during the extraordinary session.

The fuel producers argue that hydrogen-based e-fuels are currently at a disadvantage compared to LNG and biofuels, despite claims that e-fuels provide greater emissions savings and are the only fuel that cannot run out.

Dr. Alison Shaw, IMO manager at Transport & Environment (T&E), which coordinated the letter, said: “E-fuel producers need policy certainty to get green shipping fuels off the ground. Shipping could become a major offtaker for hundreds of projects worldwide, but only under the right rules.”

Shaw added: “The current IMO Net-Zero Framework leaves e-fuels competing with cheaper and unsustainable options like fossil gas and first-generation biofuels. The message from producers is clear: to decarbonize shipping at scale, incentives for green e-fuels are essential.”

According to T&E, without targeted incentives, shipping’s energy transition risks stalling before it begins.

The letter comes as the shipping industry faces increasing pressure to reduce emissions, with the IMO having committed to achieving net-zero greenhouse gas emissions from international shipping by or around 2050.

The extraordinary session represents a key moment for the maritime sector’s decarbonization efforts, with industry stakeholders closely watching whether delegates will approve the framework that could shape future fuel regulations and investment decisions.