US and Saudi Arabia Lead Opposition to IMO Net-Zero Shipping Framework

International Maritime Organization's Net-Zero Framework Under Scrutiny

The International Maritime Organization's (IMO) Net-Zero Framework, a pivotal set of international regulations aimed at significantly reducing greenhouse gas (GHG) emissions from the global shipping industry, is currently facing strong opposition led by the United States and Saudi Arabia. The framework, which includes a global fuel standard and a pricing mechanism for emissions, was approved by the Marine Environment Protection Committee (MEPC 83) in April 2025 and is slated for formal adoption in October 2025. If adopted, it is expected to enter into force in March 2027, with regulations becoming mandatory for ships over 5,000 gross tonnage from January 1, 2028.

The framework is designed to implement the goals of the 2023 IMO GHG Strategy, adopted at MEPC 80 in July 2023, which sets a vision for net-zero GHG emissions from international shipping by or around 2050, with indicative checkpoints for 2030 and 2040.

Reasons for Opposition and Proposed Delays

The United States has voiced significant objections, characterizing the framework as a 'global carbon tax on Americans' that could escalate trade costs and disproportionately benefit countries like China. Washington argues that the plan would hinder the use of established technologies such as Liquefied Natural Gas (LNG) and biofuels, where U.S. industry holds a competitive advantage. Furthermore, the U.S. has questioned the IMO's legal mandate to collect funds and enforce compliance beyond the scope of the MARPOL Convention. Reports indicate the U.S. has even threatened retaliatory measures, including sanctions, port bans, and visa restrictions, against nations supporting the framework.

Saudi Arabia echoes concerns regarding the potential for increased food and commodity prices, particularly impacting developing nations. Riyadh, alongside other oil-producing states including Russia, UAE, Venezuela, Iraq, Qatar, Bahrain, Iran, and Kuwait, has also challenged the IMO's authority to establish a fund and impose sanctions.

Procedural Maneuvers and International Reactions

During an extraordinary Marine Environment Protection Committee (MEPC) meeting held in London from October 14-17, the U.S. and Saudi Arabia have actively sought to alter the framework's adoption process. They are advocating for a shift from 'tacit acceptance' to 'explicit acceptance,' a procedural change that would require individual ratification by two-thirds of member states, significantly complicating and potentially delaying the framework's implementation.

While Saudi Arabia initially attempted to challenge the meeting's agenda, its representative later clarified that their position was 'not the abandonment of the framework,' but rather an effort 'to address the concerns and have a united house.' However, the U.S. has maintained its firm opposition. This pushback has also included pressure on the European Union to abandon its own, more stringent, shipping decarbonization measures in favor of the IMO's framework.

Despite this opposition, numerous countries, including European states and several developing nations, have expressed support for the framework, emphasizing the need for global climate action in the shipping sector.