Countries cave to Trump pressure and table net zero shipping framework

The Net Zero Framework introduced this year by the International Maritime Organisation (IMO) was not adopted last week after US President Donald Trump warned he would “not tolerate” a global carbon tax on shipping.

Despite broad consensus at the IMO’s previous meeting in April, a last-minute US-led campaign against the framework garnered support from Saudi Arabia, which last Friday filed a motion to adjourn the adoption vote by one year.

“The extraordinary session will be reconvened in 12 months’ time. In the interim, Member States will continue to work towards consensus on the IMO Net Zero Framework,” the IMO said in a statement.

This was a disappointing twist for the sustainability community and industry players investing in decarbonisation, which largely expected the framework mandating shipping companies to reduce their emissions intensity to be adopted this year.

‘A process bent to the will of the US’

“We regret today’s postponement of the adoption of the international climate agreement for shipping. The IMO Net-Zero Framework is essential to give the industry the certainty it needs and to send a strong signal to the market to produce the clean fuels necessary to get to net zero. Shipping is an international industry which requires meaningful global regulations to decarbonise. Global regulation is essential to ensure a level playing field at international level and to deliver the energy transition of international shipping. We will continue to work with our international partners to ensure an agreement on the IMO NZF can be reached”, said Sotiris Raptis, Secretary General of European Shipowners.

Joe Bettles, Climate Policy and Analysis Manager at the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, added: “64 countries voted to approve the Net Zero Framework in April, only 16 opposed it, and many of the 24 abstentions did so because they wanted a more ambitious outcome. If what happened last week had been a sincere interest on behalf of a majority of Member States to delay the NZF, it would be disappointing, but acceptable as the will of the IMO Member States. Instead, it was a process bent to the will of the US through threats and intimidation.”

Last week, clean fuel advocates were engaging with policymakers to ensure the Net Zero Framework sufficiently incentivised emerging green solutions over LNG – not suspecting that the entire deal was in jeopardy.

Net Zero Framework postponed: What now?

The framework agreed upon in April would have mandated shipping emissions intensity reductions of 30% by 2035 and 65% by 2040, from a 2028 baseline. Annual targets up to 2035 had also been agreed by IMO members, with the next set (for 2035 to 2040) due to be decided in 2032.

If companies didn’t meet these reduction goals, they would have been fined at a price of US$100 to US$380 per tonne of emissions beyond the target threshold from 2028, depending on the type of fuel used.

Now, the future of the deal is in question, as it is unlikely that Trump will allow it to proceed as long as he sits in the White House.

“Trump II is proving effective in derailing the sustainability agenda, even when industry leaders themselves support regulation,” commented Joachim Nahem, Executive Chairman and Co-Founder of consultancy Position Green.

But green shipping advocates remain determined to push through, even while global cooperation stalls. Dr. Alison Shaw, IMO Manager at Transport & Environment, said: “The delay leaves the shipping sector drifting in uncertainty. But this week has also shown that there is a clear desire to clean up the shipping industry, even in the face of US bullying. The world cannot let intimidation and vested interests dictate the pace of climate action. Climate-ambitious countries must use this moment to build a strong majority in support of meaningful decarbonisation. They will be the ones that benefit from the economy of tomorrow, not the geopolitical power games of the past.”