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Shipowners coalition supports IMO amid growing division over decarbonization rules: Leading shipowner associations — representing a quarter of the world’s tonnage — came together to back the industry’s Net-Zero Framework (NZF), which is set for a vote at the International Maritime Organization (IMO) next week, according to a statement seen by Lloyd’s List. Backers include shipping associations from Japan, Belgium, the Netherlands, Singapore, the UK, Norway, and Denmark.
The pitch: The group endorsed the NZF, describing the global regulation as the industry’s best chance at decarbonization, adding that the new policy would “strengthen the business case for cutting emissions and investing in sustainable energy, fuels and technology.” The group warned that the alternative to a unified global policy would be a “complicated and inefficient patchwork of national and regional regulatory frameworks.”
The endorsement comes in response to growing public opposition to the NZF from a separate group of shipowners, which formally expressed its opposition last month. The opposition bloc said they believe the NZF will not ensure effective decarbonization or “a level-playing field,” arguing that it fails to “incentivise investment in known and available transition technologies” and favors “unproven tech and fuels.” Opponents include Saudi’s Bahri, Greece’s Angelicoussis Group and GasLog, US-based Capital Group, South Korea’s Hanwha Shipping, and Norway-based Stolt Tankers.
REMEMBER- Our region is heavily featured in the bloc of member states opposing the IMO rules, with Iraq being the latest to join a list of eight other IMO members back in August — including Bahrain, Kuwait, Iran, Saudi Arabia, the UAE, Yemen, Venezuela, and the US — in opposing the framework ahead of the October vote.
On the cards: The framework will introduce a credit trading scheme for low-emission vessels, as well as two escalating emissions targets requiring gradual cuts to ships’ fuel carbon intensity. In turn, progressive levies will be imposed on those who fail to meet either of the targets, with the proceeds funneled into the IMO’s Net-Zero Fund to support investments in decarbonization technologies and initiatives. If ratified, these changes will take effect by 2027 and will apply to ships over 5k gross tons, covering 85% of international shipping emissions.
