IMO headquarter in London. Image Credit: IMO

Argentina, Panama and Liberia urge a reshaping of the proposed IMO’s Net-Zero Framework, calling for a more pragmatic approach that reflects current fuel market realities and preserves a role for LNG in shipping's energy transition.

The countries raised concerns that existing proposals risk penalising transitional fuels such as LNG and marine biofuels despite their contribution to near-term emissions reductions,  it said in a proposal submission to the IMO’s Maritime Environment Protection Committee on March 4.

They also warned of rising compliance costs and limited availability of zero-emission fuels.

The proposal centres on a revised Global Fuel Intensity (GFI) framework, where emissions targets are adjusted based on the demonstrated uptake of commercially viable low-carbon fuels.

To qualify, fuels must meet criteria on affordability, availability, and scalability.

Under the affordability test, fuels would only be included if their cost is no more than 15% above the market average for conventional marine fuels, helping ensure options such as LNG remain competitive during the transition.

Under the plan, a linear 30-year trajectory would gradually reduce emissions intensity from the current fuel mix towards the cleanest viable fuel, providing a stable and predictable pathway for shipowners and bunker fuel suppliers.

The proposal also rejects the creation of an IMO Fund and instead introduces flexibility measures such as credit trading, banking, and limited borrowing to support compliance.

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.