IMO Headquarters, London. File Image. Image Credit: Ship & Bunker.

• IMO members meet in London from September 1-4 to continue negotiations on the NZF
• Carbon pricing and the use of revenues are among the key issues still to be resolved
• Countries remain divided over whether to move ahead with the framework or seek major changes

Negotiations on the IMO’s Net-Zero Framework (NZF) resume this week, with member states set to work through key issues still unresolved in the proposed shipping climate rules.

The IMO’s Intersessional Working Group on Greenhouse Gas Emissions will meet in London from September 1-4, ahead of further discussions on the framework later this year.

One of the main issues will be the framework’s proposed global carbon pricing mechanism, which could generate an estimated $10-15 billion a year.

Governments still need to agree on how those revenues would be managed and spent, including funding for developing countries and the shipping industry’s transition to cleaner energy.

Several countries have submitted proposals for the future fund.

Tuvalu has also proposed strengthening the framework through a flat levy, while Australia, Canada, South Africa and the UK support moving ahead with the NZF as agreed.

Brazil has proposed delaying some of the framework’s ambition while retaining the carbon price.

Talks to Test Support For NZF in its Current Form

Japan has called for weaker carbon-intensity targets and the removal of the carbon price, while Liberia has put forward a much more limited approach to global climate regulation.

The Liberia-led proposal has been endorsed by Union of Greek Shipowners, arguing it offers a balanced and pragmatic foundation for further discussions.

However, Norway has opposed the proposal, stating it benefits fossil LNG. 

Tuvalu Transport Minister Simon Kofe said the framework was the result of years of negotiations and should not be weakened further.

“If we are to negotiate the NZF once again, it should only be to increase the climate ambition and not to weaken it further,” Kofe said.

Ports and shipping companies have also called for regulatory certainty, saying clear global rules are needed to support investment in cleaner fuels, vessels and infrastructure.

"The Port of Rotterdam strongly encourages continued discussions about a global framework for greenhouse gas emissions in the maritime sector, which will help to achieve the goals set out in the International Maritime Organization's 2023 GHG Strategy,” Boudewijn Siemons, CEO of the Port of Rotterdam, said.

The talks follow a closely divided round of negotiations in April.

At that meeting, 55 countries supported the NZF in its existing form, while 51 backed reopening it for substantial changes.

The discussions this week will focus on finding common ground on the remaining details and keeping work on the framework moving towards adoption later this year.

Second round of working group meeting is scheduled in November.