Shipping Industry Seeks Clarity Ahead of IMO’s Net-Zero Framework Adoption

The International Maritime Organization (IMO) is preparing to formally adopt its Net-Zero Framework (NZF) in October, marking a major shift in global maritime regulation with the introduction of the first international emissions pricing system for an entire industry. While widely regarded as a milestone in the effort to decarbonise international shipping, industry leaders are urging policymakers to provide clarity and simplicity as the transition unfolds.

The International Chamber of Shipping (ICS), which has consistently advocated for global market-based measures, has expressed support for the NZF but has also raised concerns about the potential complexity of the rules and the impact on smaller and medium-sized shipping companies. These companies may face significant compliance costs and logistical challenges.

Although much of the current conversation has focused on penalties for emissions, ICS emphasized that equal attention must be given to incentives that promote the production and use of low and zero-emission fuels. According to the organisation, such incentives are crucial for driving investment in new fuel types and associated infrastructure.

Fuel producers, ICS noted, need confidence that standards will be set for emerging fuels, which in turn will guide investment decisions. The organisation has called on governments to move swiftly in establishing clear and consistent fuel standards.

Commenting on the upcoming IMO meeting, ICS Secretary General Thomas A. Kazakos stated, “The IMO needs to formally adopt the Net Zero Framework in October to send a clear signal to industry and provide the incentive needed to produce these cleaner fuels. Industry needs clarity, simplicity, and detail on the rewards.”

ICS has also called for greater international coordination to avoid overlapping regional regulations. The chamber urged policymakers behind regional systems such as the European Union Emissions Trading System (EU ETS) to work toward integrating their efforts within the broader IMO framework. According to ICS, a unified approach would streamline compliance and accelerate decarbonisation efforts.

In its recent submission to the IMO, ICS proposed language changes aimed at strengthening the regulatory signal to the market, including replacing the word “may” with “shall” in key areas. It has also responded to the European Commission’s consultation by encouraging the replacement of the EU ETS with the IMO’s NZF, once adopted. The shipping sector is awaiting detailed information on how the new incentive mechanisms will function. Both shipowners and energy providers say that regulatory clarity will be essential to unlock investment in next-generation fuels and technologies, and to ensure that the global transition to net-zero shipping stays on schedule.