The International Maritime Organization (IMO) member states has agreed to the Net-Zero Framework (NZF), establishing the world’s first global emissions pricing mechanism for an entire industry.
The International Chamber of Shipping (ICS) fully supports this milestone for shipping decarbonisation but highlights ongoing challenges for shipowners, particularly smaller operators, regarding the complexity and potential costs of compliance.
Although penalties for emissions are a key focus, ICS stresses the equal importance of clear incentives for developing and adopting cleaner fuels.
The organisation urges governments to rapidly establish fuel standards to give producers confidence to invest in green fuel infrastructure.
The IMO is expected to finalise the NZF and outline incentive structures in October.
Industry stakeholders are calling for clarity and simplicity in the forthcoming rules to enable confident investment in clean technologies.
Thomas A. Kazakos, ICS Secretary General, stated: “The IMO needs to formally adopt the Net Zero Framework in October to send a clear signal to industry and provide the incentive needed to produce these cleaner fuels. Industry needs clarity, simplicity, and detail on the rewards.
“We also call on those with unilateral and regional schemes, such as European Union (EU) ETS, to agree to having one clear and transparent system under the IMO. This is critical if we are to meet the time frames set out.”
ICS has submitted proposals to the IMO urging clearer language in the rules and has encouraged the European Commission to replace the EU ETS with the IMO’s global system once adopted.
According to ICS, clear and unified regulations are essential for shipping to successfully achieve net-zero emissions.
Recently, the Nuclear Energy Maritime Organization (NEMO) was granted NGO Consultative Status at the International Maritime Organization (IMO), marking a significant milestone in NEMO’s mission to support the safe, sustainable, and responsible adoption of nuclear energy in maritime applications.
