- The majority of countries and ICS back the proposal despite concerns.
- Shippers say the plan won’t ensure a level playing field or effective decarbonization.
- Call for realistic trajectories and critical amendments to the IMO framework.
A group of shipping companies has raised alarms about the International Maritime Organisation’s (IMO) upcoming net-zero regulations, warning that they could impose significant financial strains on the industry. The IMO, which oversees global shipping, aims for net zero emissions by the middle of the century and is set to officially adopt a framework next month that would require ships to pay fees on at least some of their emissions, reports gCaptain.
Rising Costs and US Opposition
The United States has criticised the IMO’s Net Zero Framework (NZF), labelling it a “global carbon tax.” In a statement released on Thursday, shippers representing over 1,200 vessels cautioned that the industry could face annual expenses ranging from $20 billion to $30 billion by 2030. They noted that if the global fleet falls short of targets by just 10%, that cost could soar to more than $300 billion by 2035.
Broad Support Despite Concerns
Even with the US’s objections, most countries backed the NZF during an IMO vote earlier this year. The International Chamber of Shipping, which represents more than 80% of the world’s merchant fleet, has also thrown its support behind the initiative.
Call for Amendments
The group of shippers argued that the NZF “won’t be effective in helping shipping decarbonize in line with the IMO’s strategy announced in 2023 or ensuring a level playing field.” They urged the regulator to adopt “critical amendments,” including “the consideration of realistic trajectories.”
Avoiding Excessive Burdens
“It is essential that the IMO NZF implements GHG measures that are fit for purpose,” the companies, including Stolt Tankers, Frontline Plc, and Saudi Arabia’s Bahri, said. They stressed that rules should avoid “excessive financial burdens and inflationary pressure to the end-consumer.”
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Source: gCaptain
