From the 20th to the 24th of April, the governments of 62 countries met to work on the development of the Net-Zero Framework’s guidelines. Jesse Fahnestock, Director of Decarbonization, Global Maritime Forum, said: “This week at the IMO we saw an encouraging willingness from both states and industry to make progress on the guidelines essential to implementing an agreement. The transition to zero-emission shipping requires companies to develop strategic plans and begin making investments today, but to do so they need a clear and reliable regulatory environment. Detailed and comprehensive guidelines that are in line with the IMO’s greenhouse gas strategy — for example on emission calculations and rewards for alternative fuels — can give the companies the guidance they need and the confidence to invest in the transition to zero-emission technologies. It is now vital that this week’s spirit of collaboration continues next week.”

Revenue in a Net-Zero Framework

The major topic of discussion for many countries was the revenue generated by the NZF punishing non-compliance with its regulations. Christiaan De Beukelaer, Senior Lecturer in Culture & Climate, University of Melbourne, said: “When adopted, the Net-Zero Framework will raise money by penalizing non-compliance. The use of such revenues has long been a point of contention. This week, the vast majority of countries have constructively engaged in discussions on the purpose and modalities of the Fund administering and disbursing these revenues. This signals support to adopt the NZF as is, which will help IMO regulations to ensure a just and equitable transition.” This revenue would be critical for vulnerable countries who would need it most, and as such they are advocating for it to remain, standing strong against oil producing countries such as Saudia Arabia and Russia, who want to remove the carbon pricing element.

In particular, African countries have been in favor of the revenue. Dr. Dola Oluteye, Senior Research Fellow in Energy and Transport Policy, University College London, said: “Decisions at the IMO over these two weeks is critical to Africa’s economic and energy future, demonstrable in the rising voice of the African governments contributing meaningfully to shaping of the Net-Zero Framework guidelines. Several African nations are demanding that the proposed multi-billion-dollar Net-Zero Fund is used to support Africa in recognition of the level of impact of the Framework. Africa can become the world’s renewable energy hub equal to the share of its natural endowments. Demand for a just transition is critical to ensuring the Net-Zero Framework does not set her back. As such, the Fund is non-negotiable for her 1.4 billion people,” and Jamie Yates, Climate and Renewable Energy Manager, Pacific Environment, said: “Member states concluded a productive week in London at ISWG 21, advancing key technical details of the Net Zero Framework and building broad consensus around the Net-Zero Fund as one of its foundational pillars. Support came from across all world regions, and African and Pacific voices were particularly clear: the NZF must remain the basis for IMO climate action. Member states should heed that call.”

Oil Producers’ Opposition

The vast majority of countries opposing the various regulations are oil producing, with the US completely rejecting the NZF. As such, it comes across as an act of resistance against the global dominance of oil for countries to continue to support the NZF. Anaïs Rios, Senior Shipping Policy Officer, Seas At Risk, said: “Recent geopolitical instability may give the illusion that we are all reliant on fossil fuels but that is simply not true: shipping can decarbonize and must. Next week, countries must come together to support a strong Net-Zero Framework, including dedicated funding for those who need it most, and we are relying on the EU to stand united. Delaying or watering down the very regulation designed to clean up shipping leads us down a dangerous path towards weak action that comes too late. The ocean, the climate and ultimately, the people, will pay the price,” and Madadh MacLaine, Secretary General, ZESTAs, said: “The IMO’s discussion on clean energy guidelines is not a technical footnote - these guidelines will form the core, laying the very foundations that will determine the effectiveness of the colossal work done at the IMO on GHG emissions over the last years. They are the rules that determine which fuels win. Get them wrong, and we lock in a generation of vessels running on fuels that look clean on paper but deliver little for a clean energy transition. Hydrogen is proven and ready to scale but cannot compete against false solutions propped up by weak accounting methodologies. The window to set this right is open now. We need to get this right before it slams shut.”

Biofuels Under Fire

Another topic of discussion was biofuels. Biofuels have come under fire for being promoted as an ecofriendly alternative to oil, while the production of biofuel from sources such as palm and soy leads to increased deforestation. Aparajit Pandey, Principal, Rocky Mountain Institute, said: “Biofuels may have a role to play in shipping’s transition, but only where they are assessed with real rigor. That means properly accounting for indirect land use change and taking a careful, full-systems view of their broader environmental and social impacts. Without that, there is a real risk of overstating climate benefits and creating unintended consequences elsewhere.” While biofuel’s benefits in replacing oil cannot be overstated, the potential consequences must also be carefully weighed. Biofuel is an important piece of the puzzle that is decarbonizing shipping, but it is not the only piece, and it is important for everyone to remember that.

Reducing emissions is not an easy task, but countries coming together to work on the NZF is movement in the correct direction. Michael Petroni, Policy Analyst, Climate Action Tracker, said: “While not perfect, in its current form the Net-Zero Framework is the IMO’s most ambitious emissions reductions mechanism to date. It will likely put shipping on a path to limit temperature warming to 2°C, if all other sectors followed the same level of action. It would be a crucial tool for driving the uptake of zero-emissions fuel for the shipping industry. Without it, we’re likely to see shipping emissions continue rising through to 2050. Further strengthening of the NZF is still needed to align with a 1.5°C compatible pathway.”

The Net-Zero Framework and clean energy as a whole is not a minor discussion. The ramifications of decisions made now will ripple through the future, as the environment is changed based on the actions of the global community. Madadh MacLaine, Secretary General, ZESTAs, added: “The IMO’s discussion on clean energy guidelines is not a technical footnote - these guidelines will form the core, laying the very foundations that will determine the effectiveness of the colossal work done at the IMO on GHG emissions over the last years. They are the rules that determine which fuels win. Get them wrong, and we lock in a generation of vessels running on fuels that look clean on paper but deliver little for a clean energy transition. Hydrogen is proven and ready to scale but cannot compete against false solutions propped up by weak accounting methodologies. The window to set this right is open now. We need to get this right before it slams shut.”