Greek Shipowners Voice Concerns Over IMO Net-Zero Framework Amidst Divided Global Response

On April 11, 2025, the International Maritime Organization (IMO) approved a landmark Net-Zero Framework aimed at reducing greenhouse gas (GHG) emissions in the shipping industry. The framework, which includes mandatory emissions limits and a global carbon pricing mechanism, is set to be formally adopted in October 2025 and come into force in 2027.

The Union of Greek Shipowners (UGS) has expressed significant concerns regarding the framework. UGS President Ms. Melina Travlos acknowledged the framework's recognition of the "polluter pays" principle and the shift of compliance costs to commercial ship operators. However, she criticized the framework's lack of acknowledgment for transitional fuels like liquefied natural gas (LNG), stating that this oversight undermines existing investments and the industry's decarbonization efforts.

Despite these concerns, Greek shipping remains committed to leading the industry's transition to decarbonization through viable and realistic global solutions.

The approval of the Net-Zero Framework was achieved through a majority vote, reflecting a divided stance among IMO member states. A total of 63 countries voted in favor, including major shipping nations such as China, Brazil, South Africa, and many European states. Sixteen countries, led by Saudi Arabia and including Qatar, the United Arab Emirates, and Russia, voted against the framework, citing concerns over economic impacts and fairness. Approximately 24 countries, including several Pacific Island nations, abstained from the vote, expressing disappointment that the final agreement did not meet the level of ambition they deemed necessary to effectively combat climate change.

Notably, the United States withdrew from the negotiations prior to the conclusion, expressing strong opposition to the proposed economic measures and threatening to implement reciprocal measures if the fees were applied to its vessels.

The framework received support from some of the world's largest flag states, which play a crucial role in global shipping. Countries such as Liberia and Panama, which collectively register a significant portion of the global shipping fleet, backed the proposal for a flat tax on shipping industry GHG emissions. Their support was instrumental in advancing the framework, as they represent a substantial share of the world's merchant shipping fleet by tonnage.

The adoption of the Net-Zero Framework marks a significant step towards decarbonizing the global shipping industry. However, the divided responses among IMO member states highlight the challenges in achieving consensus on international environmental regulations. The opposition and abstentions underscore the need for continued dialogue and negotiation to address the concerns of various stakeholders and to ensure equitable implementation of climate measures across different economies.

The framework's success will depend on the cooperation of all member states and the ability to balance environmental objectives with economic realities.