BIMCO Doubts IMO Net-Zero Framework Deal by December | Mariner News

A new or revised Net-Zero Framework (NZF) is unlikely to emerge at the IMO’s MEPC 85 meeting in December, according to BIMCO, casting significant doubt on the shipping industry’s immediate regulatory clarity for decarbonization. The recent intersessional working group on greenhouse gas (GHG) emission reduction “did little to forge consensus” on critical areas, BIMCO stated. This signals a potential delay in establishing a clear, unified global decarbonization pathway, prolonging uncertainty for operators and investors.

Key divisions persist among member states, notably concerning the greenhouse gas fuel intensity (GFI) trajectory. Disagreement remains over whether the framework should adopt a two-tier structure, as proposed under the NZF, or a single-tier approach akin to FuelEU Maritime. Furthermore, there is ongoing debate about whether the framework should generate funds and, if so, the mechanisms for their use and distribution.

While “sporadic signs of willingness to compromise” were observed, BIMCO highlighted that these lacked sufficient detail, indicating a substantial amount of work remains. The working group is scheduled to meet again the week before MEPC 85, with expectations for new submissions and bilateral agreements among member states on core issues in the interim. This suggests a more fragmented and potentially slower negotiation process than initially anticipated.

The extended period of regulatory ambiguity means shipping companies face continued challenges in strategic planning for fleet renewal, fuel transitions, and capital expenditure. The inability to finalize fundamental aspects like GFI trajectory and funding mechanisms directly impacts the viability and timing of investments in green technologies and alternative fuels, potentially delaying the industry’s significant decarbonization commitments.