UN shipping chief hopes for consensus over Net-Zero Framework despite divisions

International Maritime Organization member states could still reach a consensus on the Net-Zero Framework without a vote despite currently divided views, the UN agency's secretary-general, Arsenio Dominguez, said April 27 after what he described as "momentum" during recent technical meetings.

The framework, designed to place a cost on life cycle greenhouse gas emissions from marine energy from 2028, was first hammered through in a vote in April 2025 before its opponents successfully prevented its adoption last October by winning a separate vote to delay the negotiation by a year.

The UN agency is holding the 84th session of the Marine Environment Protection Committee April 27-May 1, during which member states will have further talks over the framework as a growing number of countries are seeking to revise the previously approved text.

"The fact that they're actually putting forward suggestions, recommendations or proposals on the table for discussions just demonstrates that multilateralism is very much aligned with IMO," Dominguez told reporters on the sidelines of MEPC84.

'Let us move forward'

The IMO chief earlier urged member states to return to the London-based organization's tradition of making a decision by consensus in the session's opening speech, saying: "There is no reason to repeat what happened last October. There is no need for it.

"Let us move forward where we agree and continue to elaborate where further work and understanding is required."

Among member states, the US remains the fiercest opponent of the framework and has called for its abolition, while Japan has suggested ways to remove the cost element to make the NZF more acceptable to Middle Eastern oil producers. Most Pacific Island countries want the regulation adopted as is.

Dominguez said member states might not decide on the framework's final fate this week, but the procedure to make the decision, with last October's vote to adjourn the discussions over the text by a year.

"We are not exactly on schedule," he added "... I will support any decisions of the members. I will not question them on the way forward."

Recent progress

Many shipping professionals said a GHG cost could be essential to incentivize a low-carbon bunker transition, even as the competitiveness of conventional oil-based fuels has eroded due to the Strait of Hormuz shipping crisis.

The monthly average delivered bunker price for very low sulfur fuel oil was $913.32/metric ton in Singapore last month, compared with $855.41/mt of VLSFO equivalent for LNG, $1,083.05/mtVLSFOe for B24 biobunker fuel with 24% used cooking oil methyl ester, and $1,964.19/mtVLSFOe for 100% sustainable methanol, according to the Platts bunker cost calculator.

During the Intersessional Working Group on Greenhouse Gases meetings April 20-24, IMO member states discussed the GHG intensity requirements of the framework as well as the emission calculator, fuel certification and life-cycle assessment guidelines, and revenue collections for an IMO decarbonization fund.

"I already saw progress last week," Dominguez said. "I welcome the good progress on the guidelines supporting the technical element of the framework."

The IMO has set a target to reduce the carbon intensity of international shipping by at least 40% by 2030 compared with 2008 levels. Based on its latest data, the international fleet's Energy Efficiency Operating Indicator was 38% lower in 2024 than in 2008.

"This demonstrates that concrete action to reduce fuel consumption, save costs and improve efficiency is possible today," Dominguez said.