Postponement of IMO vote ‘likely to strengthen opposition to Net-Zero Framework’, says ING

Reacting to the IMO decision at last week’s extraordinary meeting of its MEPC (Marine Environment Protection Committee) to postpone adoption of the Net-Zero Framework, ING’s Senior Economist -Transport & Logistics, Rico Luman (pictured), commented:

 “The delay in the final vote to adopt the Net-Zero Framework (NZF) reduces the likelihood of passing the previously agreed proposal. It is likely to strengthen opposition, including from the United States, which may view the postponement as a win. While the delay provides additional time to build consensus—also within different shipping segments—momentum appears to be fading, making agreement increasingly difficult. Continued procrastination could ultimately lead to cancellation, which would be a disappointing outcome.

“From an economic standpoint, introducing carbon pricing is essential to level the playing field with sustainable fuels, which are currently not economically viable. Regardless of the timing, a pricing mechanism will eventually be necessary to drive progress in reducing greenhouse gas emissions, also as it helps funding green investments.

 “Progress on decarbonising the shipping sector has been limited in recent years, partly due to geopolitical disruptions that increased sea miles and operational inefficiencies. The current timeline needs to be reassessed, as the projected CO₂ reductions by 2030 already fall short of earlier ambitions. As a result, achieving the 2040 and 2050 targets set out in the IMO’s net-zero strategy is becoming increasingly challenging—particularly given the long investment horizons typical in the shipping industry.”