Generic Hero BannerGeneric Hero Banner
Latest Market News

US pushes IMO to overturn net-zero framework

  • : Oil products
  • 26/03/23

The US has asked the International Maritime Organization (IMO) to end its attempt to approve a net-zero framework (NZF) for the maritime sector.

The country suggests canceling the extraordinary meeting scheduled for October to vote on the net-zero framework, because the model under approval would "have dire economic

consequences for the shipping industry, energy producers and global consumers". The US already opposed the NZF proposal at the extraordinary meeting in October 2025 and spearheaded the movement to postpone the vote.

The request was included in the submission letter of the US delegation attending the 84th session of the Marine Environment Protection Committee (MEPC 84), which will take place in 27 April-1 May, in London. The creation of the NZF was approved at MEPC 83 in April 2025, but the regulation of the measure, in October of last year, was postponed because of a lack of consensus. The new extraordinary meeting is scheduled for October this year, and the measure can be adjourned for more 12 months.

In the submission letter, the US argues that the 2025 version of the NZF favors the use of "expensive, unproven, and unavailable fuels", instead of prioritizing existing fuels such as biofuels and LNG, of which the US is a major producer. The submission also argues that the NZF should not contain a carbon pricing mechanism, because this would transform the IMO into a "global climate bank," diverting it from its original mission of regulating the maritime sector.

Furthermore, the US says there is a strong lack of consensus among IMO member states, as was apparent in the divided vote to postpone the NZF vote last October. At the meeting, 57 countries voted for postponement, 49 voted in favor, while 21 abstained.

The US argues that, should discussions for the creation of a NZF return in the future, the mechanism should not include a carbon emission tax or any type of penalty, nor should it restrict or limit the use of any type of fuel, whether fossil or not. It also calls for the abolition of regional mechanisms for energy transition in the maritime sector, such as EU ETS and FuelEU Maritime in the EU.

The US also said that, in case of approving a new NZF model, the acceptance model should be the "explicit acceptance" or "opt-in" procedure. 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.


Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more