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The lack of a unified international framework leaves decarbonization efforts largely driven by industry, RECCESSARY carbon market analyst Sherry Hu says. (Photo: iStock)
After days of tense negotiations, the Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) voted on Oct. 17 to defer discussions on the Net-Zero Framework (NZF) for one year.
The NZF outlines a global carbon-pricing scheme under which high-emission vessels would face penalties, while revenues would reward cleaner ships. The committee’s 176 member states had been expected to vote on its formal adoption, but instead considered a motion proposed by Saudi Arabia to postpone the debate for another year. The proposal passed with 57 votes in favor and 49 opposed. China, which had previously voiced support for the NZF, voted in favor of the delay.
“The delay leaves the shipping sector drifting in uncertainty,” Faig Abbasov, director of shipping at the environmental group Transport & Environment, told Reuters. Danish shipping company Maersk said the IMO’s decision marked a loss of momentum for the industry’s decarbonization efforts, adding that it will wait to see how the organization intends to continue the work on the framework, Reuters reported.
With the process now on hold, the question is what the industry should do during this gap year. According to Sherry Hu, carbon market analyst at RECCESSARY, the long-term trend toward decarbonization in the shipping industry remains unchanged. Shipping companies that take advantage of this period to align their data, technology, and fuel strategies will be better positioned to act swiftly once policy directions become clearer.
