- US and Saudi Arabia Lead Push to Delay IMO Climate Rules.
- IMO Postpones Net-Zero Framework Amid Growing Division.
- Europe Criticises Greece and Cyprus for Abstaining on IMO Vote.
The future of global shipping’s green transition is a hot topic, and opinions are sharply divided. Recently, a campaign spearheaded by the United States and Saudi Arabia successfully blocked the ratification of the International Maritime Organisation’s (IMO) Net-Zero Framework (NZF), leaving regulators, especially in Europe, feeling quite unsettled. The decision by Greece and Cyprus to abstain from voting on the NZF deferment drew significant criticism from the European Commission, underscoring the deep rifts among IMO member states, reports Splash 247.
MEPC Session Postpones Framework Discussions
During the Marine Environment Protection Committee’s (MEPC) extraordinary session in London on October 18, delegates opted to postpone discussions for a whole year after they couldn’t reach a consensus or even call a vote on the draft MARPOL Annexe VI amendments, which are crucial to the NZF. This decision effectively pushes back any potential adoption of the framework until late 2026, complicating the timeline for the IMO’s greenhouse gas (GHG) reduction strategy that was set in 2023.
Framework Outlines Global Fuel Standard and Emissions Pricing
The IMO’s Net-Zero Framework, which was initially approved in principle at MEPC 83 in April 2025, lays out a global fuel standard and an emissions pricing mechanism aimed at steering international shipping toward net-zero emissions by 2050. A recent analysis by consultancy Linerlytica of voting patterns at the IMO headquarters in London reveals a clear divide among member states regarding the framework.
Experts Warn of Growing Uncertainty
A statement from University College London (UCL) noted: “There is now certainty that this regulation’s entry into effect will be delayed by 12 months to 1st January 2029, but there is also increased uncertainty that it will be adopted at all.”
Dr Tristan Smith, professor of energy and transport at UCL’s Shipping and Oceans Research Group, warned of the broader implications: “Instead of clarification, shipping and the global trade and energy systems now face significantly increased uncertainty and therefore risk. Understanding what happened at the IMO in October and why is now central not just for any chance of future adoption, but for just and equitable climate action generally. This lost momentum can be recovered, but we have taken a step closer to the abyss that is dangerous climate change.”
Market Analysts Predict Impact on Newbuild Orders
Analysts at Jefferies suggested that the delay could reshape shipbuilding trends, with companies reconsidering alternative-fuel investments. “We expect many to shift their dual-fuel ‘capable’ newbuildings to dual-fuel ‘ready’ to lower capex, especially for 2027 and onward deliveries (when engine changes can still be made). If there is one benefit to the IMO’s stalled initiatives, it is that shipping costs may be coming down,” Jefferies stated in a note to clients.
Calls for Stronger Global Consensus
The Sustainable Shipping Initiative (SSI) said the outcome underscores the vulnerabilities of the IMO and the growing politicisation of maritime climate decision-making. “We anticipate wider impacts from how national administrations respond, the evolution of regional regulations and the signals this sends out to the financial markets which are looking for long-term clarity,” SSI warned.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Splash 247
