- Leading tanker operators, including Frontline and Bahri, raised concerns over the IMO’s Net-Zero Framework, urging amendments for fair and realistic decarbonization measures.
- The U.S. has opposed the draft agreement, warning of tariffs and restrictions, while the IMO remains confident of adoption in October.
- With 90% of global trade reliant on maritime transport, industry leaders stress the need for effective but balanced regulation to manage emissions growth.
Several major shipping companies, including prominent Greek operators, have called for revisions to a United Nations proposal aimed at reducing marine fuel emissions. The agreement, set for adoption in October, has already faced hurdles with U.S. opposition, adding new complexity to the negotiations. According to Reuters, the deal is seen as a key step toward strengthening the regulatory framework for decarbonizing global shipping, which contributes nearly 3% of worldwide carbon emissions.
Industry Concerns Over IMO Net-Zero Framework
Some of the world’s largest tanker operators, including Cyprus-based Frontline and Saudi Arabia’s Bahri, have voiced strong concerns about the United Nations’ proposed Net-Zero Framework (NZF), scheduled for adoption next month by the International Maritime Organization (IMO). In a joint statement, the companies argued that the framework, in its current form, would not effectively support maritime decarbonization or provide a fair competitive environment. They emphasized the need for critical amendments, including more realistic timelines for implementation.
The framework stems from a draft agreement reached in April, which would impose fees on vessels exceeding global carbon emissions standards. However, U.S. officials have urged countries to reject the deal, warning of possible tariffs, visa restrictions, and port levies. The group of shipping companies cautioned that any agreement should avoid placing excessive financial strain on the industry and prevent inflationary effects on consumers.
Despite the debate, IMO Secretary-General Arsenio Dominguez expressed confidence that the deal would be adopted in October, pointing to the organization’s track record of cooperation and consensus. Still, Greek Shipping Minister Vassilis Kikilias echoed industry concerns during London International Shipping Week, stressing that improvements were necessary.
Industry insiders remain uncertain about the deal’s prospects if opposition grows or if some IMO member states abstain from voting. With nearly 90% of global trade dependent on maritime transport and emissions expected to rise without effective measures, the stakes remain high. The joint statement was also supported by major industry names such as Capital Group, TMS Group, Centrofin, Marine Trust, Trust Bulkers, Common Progress, Dynacom, Dynagas, Emarat Maritime, Gaslog, Hanwha Shipping, Angelicoussis Group, Seapeak, and Stolt Tankers.
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Source: Reuters
