The International Maritime Organization (IMO) has managed to keep its important climate framework for shipping alive after a week of intense negotiations in London. This sets the stage for decisive discussions later thi...
The International Maritime Organization (IMO) has managed to keep its important climate framework for shipping alive after a week of intense negotiations in London. This sets the stage for decisive discussions later this year, as deep divisions among members again stopped a conclusive deal.
The results from MEPC 84 largely matched what was expected before the meeting. The IMO Net-Zero Framework (NZF) came out intact as the only agreed basis for ongoing negotiations, despite efforts to weaken or revisit the proposal.
Secretary-General Arsenio Dominguez stated at the end of the session that discussions were “back on track,” but emphasized the need to rebuild trust among member states to reach an agreement.
This meeting was seen as a crucial political moment following last year's dramatic delay of the framework, where a narrow vote revealed deep geopolitical rifts—tensions that reemerged this week.
The United States, alongside comments from Federal Maritime Commission Chairman Laura DiBella, urged other countries to rethink the framework. They argued it could impose large costs on global supply chains and adversely affect consumers.
However, the framework was not abandoned. A broad coalition of countries held strong to maintain the framework's main structure, particularly its controversial carbon pricing mechanism, which is regarded as a key element of the proposal.
The situation highlighted the internal divisions within the IMO. A significant group of countries, including the EU, UK, Australia, and Canada, continued to support the framework and its pricing mechanism, viewing them as crucial for reducing emissions and financing the transition.
Conversely, a similarly sized group, which included the U.S., Saudi Arabia, and UAE, pushed to reopen negotiations. Their proposals ranged from completely removing carbon pricing to weakening fuel standards that would prolong fossil fuel usage.
The U.S. presented a different perspective on the outcome. The Department of State stated that its coalition succeeded in prompting the IMO to broaden discussions to include alternative proposals that could potentially eliminate the carbon pricing aspect entirely.
Spokesperson Thomas “Tommy” Pigott claimed that U.S. diplomats “successfully delivered” a way forward that safeguards American economic interests, suggesting that the NZF could serve as a global tax on shipping and consumers. The U.S. noted that partners like Saudi Arabia, Liberia, Panama, and Argentina supported the examination of competing proposals, some of which account for a significant portion of global shipping.
The State Department also suggested that continuing negotiations on multiple proposals indicated dwindling support for the original framework—though this view contrasted with other delegations that maintained the NZF as the primary negotiating text.
Facing a broader impasse, delegates opted to move ahead rather than force a vote, keeping the NZF as the main negotiating text while still considering alternative proposals.
The next phase will involve a series of talks in September and November, with a potential decision making window in December.
The International Chamber of Shipping welcomed the continuation of discussions but noted that a final deal still seemed distant.
“The constructive dialogue that has taken place this week is very encouraging,” said Secretary-General Thomas A. Kazakos. “However, it is evident that many Member States are still unable to adopt a global regulatory framework unless further adjustments are made.”
The group cautioned that continued uncertainty could hinder investment decisions across the sector, as shipowners consider substantial commitments related to alternative fuels and new technologies.
Reactions from delegates and observers pointed to a fragile yet significant shift. Officials from climate-vulnerable states expressed that the framework is still viable for adoption this year, with Pacific nations indicating confidence it could largely move forward as is to facilitate a "just and equitable energy transition."
Environmental groups and policy experts adopted a more urgent tone, warning that reopening the deal might undermine years of negotiations and delay necessary emission cuts at a critical juncture.
Several observers contested the narrative of a “silent majority” against the framework, arguing instead that a wide coalition from Europe, Africa, Latin America, and small island states continues to view it as the only viable path forward.
Simultaneously, multiple voices warned that merely surviving the negotiations is not enough, cautioning against lengthy, open-ended talks that could weaken ambition or postpone implementation.
The debate is taking place against the backdrop of rapidly changing global energy dynamics. The conflict in the Middle East has already led to significant fluctuations in bunker fuel prices, reinforcing the arguments from supporters of the framework that a global system could ensure long-term cost stability and expedite the transition to alternative fuels.
Critics, however, continue to argue that carbon pricing could increase costs and disrupt trade.
This issue now lies at the core of the negotiations as they head into the next round.
While the carbon pricing discussions captured headlines, MEPC 84 achieved several noteworthy regulatory outcomes.
The IMO approved a new Emission Control Area in the Northeast Atlantic, which will tighten limits on sulfur oxides, nitrogen oxides, and particulate matter across a large area of European waters starting in 2028.
The committee also adopted a new strategy aiming for zero plastic waste discharges from ships by 2030, progressed work on a global code for transporting plastic pellets, and moved forward with amendments to strengthen ballast water regulations and address underwater noise pollution.
In a separate action reflecting the broader geopolitical environment, the IMO passed a resolution condemning attacks on commercial shipping in the Strait of Hormuz, warning of the increased risk of significant marine pollution linked to ongoing conflicts.
MEPC 84 did not achieve the breakthroughs some had hoped for, but it avoided the breakdown many feared. Despite rising political pressure and competing ideas, the IMO’s Net-Zero Framework is still in play, with carbon pricing remaining a central topic of discussion.
The upcoming talks will determine whether this framework will become the world’s first global carbon pricing system for the shipping industry or succumb to geopolitical divisions.