In the wake of strong opposition to a proposed global carbon tax from the United States and Saudi Arabia, the International Maritime Organization concluded a fractious week-long session in London today by voting to delay the adoption of the Net Zero Framework (NZF) by one year.
Prior to the vote, the Trump Administration, in an unprecedented move, threatened countries supporting the NZF with port fees, tariffs and even sanctions on government officials deemed to be “sponsoring activist-driven climate policies.” In a statement, it declared that the United States “will not tolerate any action that increases costs for our citizens, energy providers, shipping companies and their customers.”
The IMO reported that 57 countries voted in favour of a delay, 49 against while 21 abstained. Eight member states were not present for the vote. A two-thirds majority was required for NZF to be implemented. The motion to delay was put forward by Singapore and called to a vote by Saudi Arabia.
“The extraordinary session of the Marine Environment Protection Committee is adjourned for one year,” the IMO said.
The NZF sets binding targets for ships over 5,000 gross tons to cut the carbon intensity of their fuels, starting in 2028, and introduces a system of credits and penalties. Vessels that exceed emission limits must purchase “remedial units,” whereas low-emission ships can earn and trade surplus credits. Revenues go into an IMO Net-Zero Fund to support clean-fuel adoption and help the transition efforts of developing countries.
Following the vote, Arsenio Dominguez, Secretary-General of the IMO said, “It’s [NZF] very much alive. The decision to taken today was to adjourn the extraordinary session that was convened to adopt the amendments for one year. And as was clarified by the chair that next week the intercessional working group will meet and they have a work plan that was discussed and agreed and will continue to move forward.”
Reaction of World Shipping Council
While expressing disappointment, the WSC acknowledged “the significant efforts of IMO Member States this week, and over many years, to work toward a necessary global agreement.
“The 2023 IMO GHG Strategy and industry’s investment trajectory remain aligned toward net-zero by 2050. A globally agreed framework is needed to provide a level playing field to get there.
“The liner industry is committed to the goal of net-zero by 2050 and has invested USD 150 billion in ships designed to run on green fuels.
“The IMO remains the right place to deliver a global solution. We are committed to continuing work with governments to deliver the necessary regulatory consistency, support renewable fuel production and infrastructure, and keep shipping’s energy transition on track.”
(Photo of IMO Marine Environment Protection Committee session)