A call for IMO Member States to support the adoption of the Net-Zero Framework

In October, the International Maritime Organization (IMO) will make a pivotal decision regarding the adoption of the Net-Zero Framework, a move that could significantly impact the global shipping industry. The Getting to Zero Coalition, comprising over 180 companies, is urging IMO Member States to embrace this framework. Failure to do so could jeopardize the industry’s momentum toward zero emissions and have far-reaching negative consequences.

Importance of the Net-Zero Framework

The International Maritime Organization serves as a key global regulator, tasked with shaping the future of the shipping industry through binding regulations. In April, the IMO reached an agreement on new regulations aimed at facilitating the transition to zero emissions, a process that began with the adoption of the Revised Greenhouse Gas Strategy earlier this year. While the transition presents challenges, the IMO’s regulatory approach is viewed as essential for ensuring a fair and efficient shift across the industry.

The Getting to Zero Coalition welcomed the April agreement, emphasizing the need for ongoing negotiations to establish effective implementation guidelines. The coalition believes that a strong political commitment to adopt the framework in October is crucial for maintaining the momentum of the transition. Without this commitment, the industry risks losing significant investments in new technologies and infrastructure that are vital for the future of global trade.

As the shipping sector begins to embrace alternative fuels, new vessels are being ordered, and the supply chain is adapting to meet this emerging demand. However, prolonged uncertainty surrounding regulatory frameworks could threaten these investments and delay progress. Each year of inaction compounds the challenges, leading to scrapped projects and extended planning cycles. The absence of global regulatory guidance will ultimately increase costs for the industry, countries, and consumers alike.

The Role of Multilateralism in Decarbonization

The IMO’s role as a global regulator is critical in addressing the challenges of decarbonization in the shipping industry. For many, multilateralism is not merely an ideal; it is the foundation of effective global regulation that enables the industry to operate efficiently. The IMO’s efforts in this area have been complex, yet the progress made thus far offers hope that even the most daunting challenges can be tackled collectively.

As the shipping industry awaits the IMO’s decision in October, stakeholders are urged to reinforce their commitment to the Net-Zero Framework. The outcome of this decision will not only influence greenhouse gas emissions but also shape the future of global trade and economic growth. The time for decisive action is now, as the industry stands at a crossroads that could define its trajectory for years to come.