Offshore Energy — 2025-10-20
Maritime and Ports
Governments at the International Maritime Organization (IMO) agreed to delay the planned adoption of the Net-Zero Framework (NZF) for one year in a vote at the Extraordinary Session of the Marine Environment Protection Committee (MEPC E.2) in London on October 17.
The postponement of the world’s first global carbon pricing system on any international polluter—global shipping—is seen as a major setback in meeting the maritime industry’s decarbonization targets.
The decision is understood to be a result of delay tactics and procedural sabotage by the United States, Saudi Arabia, Russia and other petrostates at last week’s negotiations. The motion to delay was put forward by Singapore and called to a vote by Saudi Arabia.
A clear majority of countries at the MEPC E.2 supported the adoption of the framework, which was agreed in principle in a vote in April 2025. In April, 63 countries voted yes (including the EU27, Brazil, China, India, Canada, UK, Korea, and Japan) versus a minority opposition from 16 oil-producing states.
In the lead-up and throughout the meeting, the Trump Administration threatened retaliatory tariffs and sanctions, especially on developing and most climate-vulnerable states, if they support the framework. Delegates from many developing countries described this extraordinary pressure on their capitals as “bullying”, “unprecedented”, and “undiplomatic”.
The US and Saudi Arabia also tried to create a delay by proposing to change the IMO’s regular adoption process by consensus to an ‘explicit’ adoption process which would impose additional hurdles to enforce the framework, especially for many developing countries.
Some delegates believe that putting the talks on hold will give countries more time to find consensus on this flagship climate law. Others fear that the US will further ramp up pressure on developing countries to oppose adoption at a later stage.
As the world’s first, the mechanism would require ships to pay fees for non-compliance with gradually increasing carbon intensity targets, expected to generate up to $15 billion per year in finance from 2030. The IMO is still set to meet again for technical discussions (ISWG-GHG-20) on October 20-24, to discuss key policy details on design and implementation of the NZF, including green energy incentives and the revenue disbursement. The original entry into force of the NZF was planned for March 2027. This timeline will now have to be reviewed.
“We came to London in reluctant support of the IMO’s Net-Zero Framework. While it lacks the ambition that climate science demands, it does mark a significant step. We regret that IMO members followed Singapore’s initial proposal to delay the adoption of the framework by 12 months, which Saudi Arabia called to a vote. This is unacceptable given the urgency we face in light of accelerating climate change. Moreover, the ICJ and ITLOS Advisory Opinions have made it crystal clear that taking climate action is not optional. But the IMO’s failure to adopt the framework this week marks a failure of this United Nations agency to act decisively on climate change. This makes the road to Bélem and beyond more difficult. But we know that we have international law on our side and will continue to fight for our people and the planet,” Ralph Regenvanu, Minister for Climate Change, Energy, Meteorology, Geohazards, Environment and Disaster Management for the Republic of Vanuatu, highlighted.
“This outcome is a devastating indictment of Member States’ lack of courage to stand in solidarity with climate vulnerable countries to achieve a just and equitable maritime transition. Faced with pressure, too many governments chose political compromise over climate justice, and in doing so, abandoned the countries bearing the brunt of the climate crisis. We now look to ambitious states, including those driving the Global Solidarity Levies Taskforce, to step up, act decisively, and demonstrate the nature of true multilateralism,” Emma Fenton, Senior Diplomacy Director at Opportunity Green, said.
“The inability to reach an outcome is a missed opportunity to accelerate a just and equitable transition in global shipping. Another chance to scale and invest in clean fuels has been missed, stalling inclusive climate action yet again. Small Island States and the Global South will continue to pay the biggest price for this inaction,” Alisa Kreynes, Director for Ports & Shipping at C40, commented.
“Delaying the vote on the International Maritime Organization’s Net Zero Framework is frustrating and a betrayal of the world’s most vulnerable nations. We urge IMO member states to adopt the Framework as soon as possible. The world is watching, and we will not rest until global shipping delivers real cuts in emissions, air pollution, and climate damage,” Teresa Bui, Senior Climate Campaign Director, Pacific Environment, stressed.
“Today’s (Oct 17) delay in adopting the Net Zero Framework is a missed opportunity — and a setback that risks derailing the timeline countries agreed to under the International Maritime Organization’s 2023 Strategy. Every delay means that innovation will struggle to scale, inequities will deepen, and the transition to clean shipping will become harder and more costly,” Natacha Stamatiou, IMO GHG Lead, Global Shipping, Environmental Defense Fund, stated.
“We know progress is possible when governments act together, now they have the opportunity to prove it. We cannot afford to wait any longer. It is vital that Member States return to the negotiating table and deliver a measure that reflects wise ambition — one that delivers a just, equitable and effective energy transition to secure a cleaner, more equitable future for generations to come.”
“Getting the Net-Zero Framework adopted in this MEPC ES.2, however imperfect, was fundamental for shipping to stay within reach of its own decarbonation targets. Emotions have run high this week at the IMO, with once high-ambitious alliances wavering and strategies eclipsing reason. This isn’t the United States of Shipping — no single flag should dictate the world’s climate course. With countries like Saudi Arabia leading efforts to delay, few expected a postponement to prevail but here we are. What matters now is that countries rise up and come back to the IMO with a louder and more confident yes vote that cannot be silenced. The planet and the future of shipping does not have time to waste,” Anaïs Rios, Shipping Policy Officer, Seas At Risk, pointed out.
“We regret today’s postponement of the adoption of the international climate agreement for shipping. The IMO Net-Zero Framework is essential to give the industry the certainty it needs and to send a strong signal to the market to produce the clean fuels necessary to get to net zero,” Sotiris Raptis, Secretary General of European Shipowners | ECSA, noted.
“Today’s adjournment is a disappointing setback for shipping, but not the end of this journey. The adjournment for a full year creates serious challenges for meeting the timelines in the Net-Zero Framework agreed in April and will make delivery of the sector’s decarbonisation targets even more challenging. We encourage Member States that agreed on the framework in April to re-confirm their commitment to multilateralism and continue the urgent work of developing guidelines and adopting a regulatory framework that can deliver on the IMO’s unanimously agreed Greenhouse Gas Strategy,” Jesse Fahnestock, Director of Decarbonisation at the Global Maritime Forum, concluded.