Japan's NZF Proposal Risks Climate Funding for Developing Countries: Opportunity Green

by Ship & Bunker News Team
Tuesday October 20, 2026

Japan's proposed changes to the IMO’s Net-Zero Framework (NZF) could affect climate funding for developing countries, according to environmental NGO Opportunity Green.

In an analysis shared on Tuesday, the NGO warned that removing the IMO Net-Zero Fund and introducing a direct contribution scheme could reduce predictable funding for the maritime transition and weaken incentives to adopt zero- and near-zero-emission fuels.

Japan's proposal would make surplus units the main mechanism for addressing compliance deficits, with direct contributions to approved projects available when sufficient units are unavailable.

In a separate submission to the IMO's greenhouse gas working group on October 9, Japan proposed that independent external bodies assess and oversee projects, while the IMO establishes eligibility criteria and audits those bodies.

It also suggested measures to guide funding towards a just and equitable transition.  

Opportunity Green argued that these arrangements may not guarantee equitable funding for climate-vulnerable countries, particularly small island developing states and least developed countries.

The NGO urged IMO member states to retain the existing framework's collective funding mechanism ahead of further negotiations

The next working group meeting, ISWG-GHG 23, is scheduled for November 23-27.

Ship & Bunker News Team
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