- The U.S. and Saudi Arabia have rejected the IMO’s proposed Net-Zero Framework, citing cost and authority concerns.
- Washington warned the plan could act as a “carbon tax” and undermine LNG and biofuel industries where it holds an advantage.
- Saudi Arabia highlighted the risks of rising food and commodity prices, particularly for developing nations.
- The IMO’s Marine Environment Protection Committee will review the proposal in October, with possible enforcement from 2027.
The United States and Saudi Arabia have voiced opposition to the International Maritime Organization’s (IMO) proposed Net-Zero Framework, raising concerns over trade costs, regulatory authority, and potential market imbalances. Their stance comes as the framework heads for discussion at the IMO’s Marine Environment Protection Committee in October, according to Container News.
Opposition to the Net-Zero Framework
Washington has criticized the proposal, describing it as a “global carbon tax on Americans” and warning it could give China a competitive edge while undermining existing cleaner fuel options such as LNG and biofuels, where U.S. companies already maintain strong positions. Officials also suggested that retaliatory steps could be considered against governments backing the measure. Saudi Arabia echoed similar objections, stressing that imposing emission-related charges on shipping would drive up food and commodity prices, particularly impacting developing economies.
Riyadh also questioned whether the IMO holds the legal authority to collect funds, impose sanctions, or enforce compliance outside the limits of the MARPOL convention. The IMO’s Marine Environment Protection Committee is scheduled to review the proposal between October 14–17, with potential amendments to MARPOL Annex VI requiring two-thirds approval from member states. If adopted, the Net-Zero Framework would take effect in March 2027 and formally launch on January 1, 2028.
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Source: Container News
