- The IMO has agreed to the first global emissions pricing system for international shipping under the Net-Zero Framework (NZF).
- ICS fully supports the move but stresses the need for simple and clear rules, especially for smaller operators.
- Incentives for cleaner fuels and clear standards are critical to drive investment in green fuel infrastructure.
- ICS urges the IMO to adopt the framework in October and calls for a unified global system over regional schemes like the EU ETS.
In a landmark move, the International Maritime Organization (IMO) member states agreed in April to implement the Net-Zero Framework (NZF), establishing the first-ever global emissions pricing system for an entire industry, according to the report published by the International Chamber of Shipping (ICS).
Clarity, Incentives, and Simplicity Needed to Drive Progress
While shipowners support the IMO’s efforts, concerns remain—particularly among small to mid-sized operators—over the complexity and cost of complying with new rules. The current framework emphasizes penalties for emissions, but industry leaders stress that clear incentives for cleaner fuels are equally essential. These incentives would not only encourage adoption but also give fuel producers the confidence to invest in green infrastructure.
Governments play a key role in this transition. Establishing clear, global standards for cleaner fuels will help align investment strategies and support the broader shift to net-zero. With the IMO expected to finalize the NZF details in October, shipowners and energy suppliers are urging the organization to provide specific guidance on how the incentive mechanisms will function.
ICS Secretary General Thomas A. Kazakos emphasized the importance of clarity and consistency, stating that industry needs firm commitments and simple, transparent rules to move forward. ICS has submitted proposals to the IMO, including a recommendation to replace ambiguous language—such as changing “may” to “shall”—to send a stronger market signal. The chamber also encouraged the European Commission to retire the EU Emissions Trading System (EU ETS) in favor of the IMO-led NZF once it is fully adopted.
Clear, unified regulation under the IMO is seen as critical to ensure a smooth, timely, and coordinated path toward net-zero shipping.
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Source: International Chamber of Shipping (ICS)
