Multiple delays during Thursday's Marine Environment Protection Committee (MEPC) meeting has cast a shadow on Friday's vote on the net zero framework (NZF) for marine fuel global greenhouse gas (GHG) emissions pricing.
The drafting group for the International Maritime Organisation's (IMO) pricing mechanism released the final text by midday Thursday, but a vote was pushed to Friday as multiple breaks were called for ongoing "consultations" between member states. A delegate told Argus that the discussions have turned "high level" and expressed uncertainty about the outcome.
Some delegate have also expressed uncertainty about whether IMO has a sufficient mandate to implement the GHG pricing mechanism as is, even if a vote goes through narrowly.
The emissions pricing mechanism has faced particular opposition from the US this year, which has flipped its prior support for such measures under President Donald Trump. On Thursday afternoon Trump railed against the proposal on social media, saying "The United States will NOT stand for this Global Green New Scam Tax on Shipping, and will not adhere to it in any way, shape, or form."
He called on other countries to join the US in voting against the proposal Friday.
Member states will also have to vote on a number of amendments, including one the US delegation submitted asking for an "explicit acceptance" or "opt-in" procedure for parties to accept the proposed NZF. Under this proposal, the regulation would come into effect only after two-thirds of the parties — or parties whose combined merchant fleets constitute not less than 50pc of gross tonnage of the world's merchant fleet — voluntarily communicate to the IMO the acceptance of the framework.
This proposal from the US could delay the maritime sector's adoption of the NZF by years, even if the mechanism is approved, delegates told Argus. But the US delegation argued that the regulation would still come into force by the current planned date if the explicit acceptance threshold is achieved by 1 September 2026.
The explicit acceptance mechanism was used in the past for International Convention for the Prevention of Pollution from Ships (MARPOL)'s Annex VI to come into force. The Annex was approved in a convention in 1997, but came into force only in 2005, when two thirds of the countries voluntarily opted in.
The UAE also issued a proposal, discussed in the plenary, relating to concerns of having existing regional mechanisms such as the EU emissions trading system (ETS) remain on top of the IMO NZF, creating a "dual regulatory system" which would result in "uncertainty and duplication". The EU previously said there are review clauses built into existing maritime regulations, which would mean that the EU can review or amend if IMO matches its ambitions.
The UAE's proposal attracted a significant number of supporters, before the session was stopped for breaks after delegates diverged on the sequencing of discussion.
The vote on adoption is now expected to be held on Friday, and will require two-thirds of the majority of International Convention for the Prevention of Pollution from Ships (MARPOL) Annex VI signatories to vote in favor for adoption. There are 95 out of 108 MARPOL Annex VI signatories currently present.
