Cracks in industry support for IMO “Net Zero Framework” carbon tax start to show

Image: IMO

The International Maritime Organization’s Marine Environment Protection Committee will hold an extraordinary session next week (October 14-17) to consider adoption of what IMO calls the “Net Zero Framework” (NZF). It’s actually what U.S, Secretary of State Marco Rubio, Secretary of Commerce Howard Lutnick, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy identified as “effectively a global carbon tax … levied by an unaccountable UN organization.”

Still, despite mounting pushback, the NZF has gained a lot of support from much of the shipping industry establishment and today several international maritime associations and organizations statement reiterating their strong support for its adoption at the upcoming MEPC session.

The organizations signing off on the statement were the International Chamber of Shipping, the World Shipping Council, the European Community Shipowners Association, the Asian Shipowners Association, the International Transport Federation (ITF), the International Association of Ports and Harbors (IAPH) and IBIA (tt=he International Bunker Industry Association).

The statement said:

“The global industry remains fully committed to working collaboratively with IMO Member States to implement successfully this carefully balanced regulatory package for achieving net zero GHG emissions by or close to 2050, with necessary incentives to de-risk investment in new green marine fuels to accelerate the total decarbonisation of international shipping and to implement a just transition for the maritime workforce. Only global rules will decarbonize a global industry. Without the framework, shipping would risk a growing patchwork of unilateral regulations, increasing costs without effectively contributing to decarbonization.

“With the support of the industry, this is a unique and historic opportunity for governments to put in place a comprehensive global framework, which will be strictly enforced worldwide, to incentivise the shipping industry’s transition to net zero emissions whilst ensuring a level playing field.

“The maritime transport sector, which moves 90% of global trade, is ready to play its important part in delivering a sustainable future.”

Not everyone aboard

Not all the individual companies represented by these associations will be totally enthused by NZF.

During the recent London International Shipping Week, a group of powerful players in the tanker and gas carrier issued a statement saying that fundamental amendments to NZF would be required before its adoption.

The cosignatories included Frontline, TMS Group, Capital Maritime, the Angelicoussis Group, Saudi state carrier Bahri, GasLog, Seapeak, and Stolt Tankers.

Their statement, said, in part that “the IMO NZF, as currently defined, lacks a comprehensive impact assessment and more importantly interim fuel availability checkpoints similar to previous fuel change regulations like IMO 2020. As it stands, we do not believe the IMO NZF will serve effectively in support of decarbonizing the maritime industry as per the IMO 2023 strategy, nor ensure a level-playing field as intended. This is of grave concern.”

Then it went into a more detailed analysis that you can read HERE