IMO Net-Zero Framework negotiations conclude without agreement in London

Negotiations regarding the International Maritime Organization (IMO) Net-Zero Framework concluded in London this week without a final agreement among member states. The four-day technical meeting focused on addressing objections to the international framework for reducing greenhouse gas emissions from shipping.

Disagreements persist regarding the economic mechanism associated with emissions, the management of generated resources, and specific greenhouse gas reduction targets. While 38 countries reportedly supported maintaining carbon pricing and its revenue mechanism, 17 countries—largely oil-producing nations—opposed it due to cost concerns. The proposed economic mechanism is estimated to raise between $10 billion and $15 billion annually.

Key players showed diverging positions: the European Union expressed willingness to study modifications to the centralized fund and reduction targets, whereas the United States and Saudi Arabia maintained opposition to certain components of the proposed scheme. Other proposals, such as one from Liberia, suggest tying emissions requirements to fuel availability and affordability through a system of transferable Surplus Units. Despite the lack of a new consensus, observers noted that the existing framework remains the most viable option as states aim for an agreement by the end of the year.