MEPC 84 is scheduled to take place end of next month. File Image / Pixabay

Japan is calling for changes to planned shipping emissions rules under the proposed IMO’s Net-Zero Framework (NZF), seeking to remove mandatory payments to an IMO fund and instead rely on market-based compliance options.

Ships that fail to meet GHG fuel intensity (GFI) targets should be allowed to balance deficits by trading surplus units, rather than being required to pay into the proposed IMO Net-Zero Fund, it said in a proposal to the IMO’s Maritime Environment Protection Committee on March 18.

The framework combines a global fuel standard with a pricing mechanism aimed at cutting GHG emissions from shipping in line with the IMO’s 2050 net-zero goal.

The proposed fund would require ships that miss emissions targets to make payments, effectively acting as a global carbon pricing mechanism.

Japan’s proposal targets this pricing element of the framework, arguing that expanding trading would give shipowners more flexibility while addressing concerns from some member states that mandatory payments resemble a global carbon tax.

The country also called for revisions to emissions targets, warning that current levels may be too strict and could limit the use of fuels such as LNG.

It suggested adjusting both base and direct compliance targets using updated transport demand data and expected efficiency gains, while still aligning with the IMO’s overall emissions reduction ambitions.

Japan said its proposals are intended to help bridge divisions among member states and support progress in ongoing negotiations on the IMO’s mid-term GHG measures.

The submission comes ahead of the 84th session of the Marine Environment Protection Committee (MEPC 84), scheduled to take place from April 27 to May 1.