The International Maritime Organization’s (IMO) Net-Zero Framework, which introduces a new fuel standard for ships and a global pricing mechanism for emissions, has stirred sharp debate across the shipping sector as Member States prepare to decide on its adoption next month.
The agreement, reached in April 2025, is being hailed by supporters as a “historic” step toward decarbonising global shipping, while critics argue it is a “shipwreck” that misses key targets.
The Getting to Zero Coalition – a group of more than 180 companies – has urged IMO Member States to endorse the framework, warning that failure to do so would have “significant negative consequences for the shipping industry”. The coalition stressed that regulation by the IMO is the only way to ensure the transition happens “fairly, efficiently, and globally”.
“It is crucial that constructive negotiations continue and that negotiators agree on guidelines for implementation,” the coalition said. “The foundation for success is there if the political will to adopt the framework in October and refine it over time remains firm.”
However, the United States has strongly opposed the proposal, denouncing it as “a global carbon tax on Americans levied by an unaccountable UN organization”. Washington has vowed to retaliate against countries backing the plan.
Industry leaders have also raised concerns. Christopher J. Wiernicki, Chairman and CEO of the American Bureau of Shipping (ABS), said that while the industry needs a framework, the current proposal lacks a realistic roadmap for fuel availability, infrastructure, and scalability.
“Achieving net zero for shipping by 2050 looks like a wildcard,” Wiernicki said at the launch of ABS’ 2025 Sustainability Outlook. “The mechanics need to be thought through. Right now, we are not where we need to be. Emissions remain 121 percent above the 2008 baseline, compliance costs are compounding, and the signals shaping investment are moving at different speeds. The IMO needs to take a timeout. We need to get this right.”
According to ABS’ report, despite improvements in carbon intensity, the industry’s absolute emissions are still rising. Compliance costs are projected to soar, with the daily operating expenses of a typical vessel in the EU expected to climb from around $15,000 in 2028 to $45,000 by 2035. The report also warns against over-penalising LNG in the 2030s, arguing that it remains critical for keeping hard-to-abate segments compliant and for bridging the gap until scalable zero-carbon fuels are available.
The decision on adoption of the Net-Zero Framework will be taken by IMO Member States in October 2025, a moment that could shape the future of shipping’s decarbonisation strategy.
