EU stands firm on IMO Net‑Zero plan as US threatens retaliation

EU stands firm on IMO Net‑Zero plan as US threatens retaliation

EU backs IMO’s Net‑Zero Framework despite US retaliation threats

by Lloyd's List


THE European Commission has reiterated its support for the International Maritime Organization’s Net-Zero Framework (NZF), brushing aside the US threats to retaliate against nations backing the decarbonisation proposal.

 

The move comes ahead of a pivotal vote that could shape the direction of shipping’s green transition and underscores the growing weight of geopolitics in the maritime industry.

 

In a statement issued on Sunday, the Commission described the NZF as an “ambitious” measure to ensure a “global level playing field,” urging its adoption at next week’s meeting.

 

The draft framework — which includes a gradual carbon pricing mechanism — was approved in April with broad support from member states. This week’s vote, during an extraordinary session of the IMO’s Marine Environment Protection Committee starting on October 14, will determine whether the proposal is formally endorsed.

 

While the framework continues to enjoy official backing from most member states, including the EU and China, its outlook has become increasingly uncertain in recent weeks amid rising opposition. The US has emerged as one of the strongest critics, warning of reprisals against countries voting in favor.

 

Industry experts have warned that a failure to adopt the plan could leave shipping subject to a more fragmented and costly patchwork of emissions regimes, while dealing a severe blow to the IMO’s credibility.

 

Others argue that adoption remains likely, though the real challenge lies ahead in hammering out detailed provisions, including reconciling the scheme with the EU’s own emissions measures to avoid double charging.

 

In its statement, the European Commission said that once adopted, it “will review the relevant EU regulations in place.”

 

Brussels has previously said it would consider aligning its Emissions Trading System and FuelEU Maritime rules with the IMO’s efforts, though there are concerns that the bloc may be reluctant to forgo the significant revenues such levies generate.

 

The latest EU declaration follows a fierce backlash from Washington, which has denounced the NZF as “the first time a UN organization levies a global carbon tax on the world” — one that would raise costs for US businesses and consumers.

 

In a joint statement on October 10, Secretary of State Marco Rubio, Energy Secretary Chris Wright, and Transportation Secretary Sean Duffy expressed strong opposition to the IMO proposal, warning that it could have “disastrous” economic consequences.

 

The US officials also outlined possible retaliatory actions against countries supporting the NZF. These could include new investigations and regulations targeting what the US calls anti‑competitive practices, as well as possible restrictions on vessels from those nations entering American ports.

 

The administration is also considering higher visa fees and stricter requirements for foreign seafarers, penalties on shipyards and LNG infrastructure linked to supportive countries, and extra port charges on their fleets. Sanctions on officials promoting climate policies seen as harmful to US consumers are also under review.

 

“The US will be moving to levy these remedies against nations that sponsor this European-led neocolonial export of global climate regulations,” the statement said, adding that IMO members “should be on notice.”

Source: Lloyd's List