By Friday, October 17, the “road map” for the decarbonization of shipping, the so-called Net-Zero Framework, will have been put to a vote.
A map that will determine the course of the sector for the next 25 years. A map that has caused reactions and “rejections”. Both at an industry level and at a political level.
Characteristic of the criticality of the meeting is the interview given to Lloyd’s List by Ms. Melina Travlou, president of the Union of Greek Shipowners.
Among other things, Ms. Travlou points out: “This also concerns the credibility of the IMO. This makes it even more important to maintain our faith in the IMO at this critical moment, but the IMO itself must show much greater understanding of the industry it regulates.
There is widespread dissatisfaction among shipowners, as the genuine intention of the sector to contribute to decarbonization has been undermined by energy policies – with oil-producing and gas-producing countries on one side and biofuel-producing countries with high ambitions on the other.
We cannot change the past, what happened, happened. The issue is to find a way to move forward in the best possible way for the industry and the environment.”
Recently, at Maritime Cyprus, Mr. George Prokopiou, Mr. Andreas Hadjiyiannis, president of the Cyprus Union of Shipowners, Mr. Thanasis Martimos, Ms. Semira Palaiou, and Dr. Ioannis Koustas analyzed the challenges and paradoxes of the current strategy, expressing strong concern about the conversion of shipping into a tax collection mechanism, without substantial environmental result.
This was preceded by a joint announcement from 19 shipping companies with a fleet of 1,200 ocean-going vessels, with a total carrying capacity of over 150 million dwt, which highlights the major practical problems that an agreement, reached after major compromises, could create for the industry, as well as for the global economy.
However, at an institutional level, the sector supports the NZF. In their joint announcement, industry Associations state that “the alternative is a complex and ineffective jumble of national and regional regulatory frameworks.
Such a scenario would also derail current efforts for the energy transition and endanger global trade through distorted market conditions and unfair competition.”
The shipping industry bodies supporting the NZF are: European Shipowners | ECSA, ASA shipowners’ associations, Japanese Shipowners’ Association, Royal Belgian Shipowners’ Association, Royal Association of Netherlands Shipowners, Singapore Shipping Association, UK Chamber of Shipping, Norwegian Shipowners’ Association, Danish Shipping, International Association of Ports and Harbors, IBIA – The International Bunker Industry Association, The International Chamber of Shipping, The World Shipping Council.
The agreement initially approved last April, and to be put to a vote this week, is the result of last-minute political compromises, and initially surprised the shipping industry, which had favored the proposal of the International Chamber of Shipping.
However, the agreement among IMO member states last April was considered a given, until the USA “returned to the table”.
Last April, the United States abstained from the discussions and the vote.
However, during the summer they expressed their vertical opposition, warning with countermeasures. Last Friday, they returned with clear threats against whichever countries vote for the measures.
“The government categorically rejects this proposal before the IMO and will not tolerate any action that increases the cost for our citizens, energy providers, shipping companies and their customers, or for tourists.
The economic impacts from this measure could be catastrophic, as some estimates predict an increase in global transport costs of up to 10% or more.
We call on everyone to reject the adoption of the NZF at the October session and to cooperate to protect our collective economic and energy security,” state, among others, in a joint announcement US Secretary of State Marco Rubio, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy.
They also directly threaten with:
