The International Maritime Organization’s (IMO) extraordinary session of the Marine Environment Protection Committee (MEPC), held October 14-17, voted to delay the adoption of the draft revisions to MARPOL Annex VI including the IMO Net-Zero Framework.
The extraordinary session will be reconvened in 12 months’ time. In the meantime, member states will continue to work towards consensus on the IMO Net-Zero Framework.
Approved at the MEPC 83 session in April 2025, the IMO Net-Zero Framework is a set of international regulations aimed at reducing GHG emissions from ships and features two key elements: a global fuel standard and a global GHG emissions pricing mechanism.
More than 100 countries had gathered in London to approve the deal first announced in April 2025. However, the US administration was vociferous in its criticism of the scheme, with president Donald Trump going as far as threatening tariffs on countries that voted in favour of it. Ultimately, a motion to delay by a year was passed.
April’s agreement had meant that from 2028 ship operators would have to use increasingly cleaner fuels or face fines. Champions of the deal welcomed a global standard for marine shipping emissions. Some detractors voiced concerns around raised prices for consumers, while others stated that it did not go far enough to address the climate crisis.
Ultimately, many large shipowners/operators, primarily in the container business, have advanced with newbuilding schemes that lean into alternative fuels. With skin in the game, it’s hard to see them reversing those investments on the basis of a one-year delay. However, it does beg the question of what smaller, niche carriers will do with regard to fleet renewal.
Many multipurpose vessel operators, for instance, have been reluctant to place newbuild orders en masse in the present environment. Not only are newbuild prices prohibitively high, the question of alternative fuel availability beyond the major bunkering hubs remains unanswered.
This delay to the IMO Net-Zero Framework will do little to foster confidence and will likely encourage those on the fence with regard to new orders to keep their powder dry for a little while longer.
