Two inter-sessional meetings are scheduled for September 1-4 and November 23-27. Image Credit: IMO

• Saudi and UAE argue long-haul trade could face higher NZF costs
• Two inter-sessional meetings are scheduled for September 1-4 and November 23-27, ahead of MEPC 85 on November 30-December 3
• NZF failed adoption last October amid pressure from US-led block

Saudi Arabia and the UAE have called for alternatives to the IMO's Net-Zero Framework (NZF), warning that its current proposed plan could disproportionately affect long-haul trade and remote economies.

The two countries raised their concerns in a submission to the IMO last month ahead of the first inter-sessional meeting scheduled next month.

They argue that a uniform global compliance cost would not result in an even economic burden across shipping routes, commodities and countries.

“In shipping, cost incidence is not uniform because freight markets and trade demand are not uniform,” the submission said.

“These features imply that a uniform global compliance cost can produce uneven real-world burdens.”

Saudi Arabia and the UAE also warned that compliance costs would increase with fuel consumption and voyage distance.

“The IMO Net-Zero Framework also embeds geographic asymmetry through a distance-based markup,” they said.

“This increases the delivered cost of goods more sharply for longer routes, which can disadvantage remote exporters, long-haul importers, and trade-dependent economies, particularly import-dependent economies.”

They also warned that the impact could be greater during tight freight markets, when operational adjustments such as speed reductions can cut effective capacity and amplify freight rates.

The countries asked the working group to consider alternatives addressing trade impacts, cost incidence and distance-based asymmetries.

The NZF failed to secure a final vote in October 2025 amid opposition from a US-Saudi-led bloc, with a decision postponed by one year.

In an effort to reach broader consensus on the NZF, two inter-sessional meetings are scheduled for September and November ahead of MEPC 85.