GREECE and Saudi Arabia are teaming up against the IMO’s global carbon price plan, in a further blow to its chances of becoming law.
The two countries’ energy ministries agreed to submit a joint proposal on the Net-Zero Framework ahead of the next formal talks in October, with Greece saying their “common position” with the US on the framework “has already borne fruit”.
Greek energy minister Stavros Papastavrou said Greece was “a voice of realism in Europe, regarding energy”.
Greece is in talks with Saudi Arabia on an idea to link the two countries with an electricity cable, and is also courting US oil major Chevron to look for offshore gas.
Its deal with Saudi Arabia further erodes EU unity on the NZF, which already faces long odds of adoption amid staunch opposition from the Trump administration.
The IMO was due to vote on whether to adopt the NZF in October, but instead delayed it for one year under US and Saudi pressure.
Greece and Cyprus abstained from the vote to delay, in defiance of EU rules that say all 27 members must vote as a bloc.
Greek energy minister Stavros Papastavrou could not be reached for comment on Friday.
But in December, he told a US think tank the green transition “cannot be an end in itself”.
“In the IMO, we and Cyprus differentiated from the European Union,” Papastavrou said.
“This was not an easy decision. The European Union basis is that we act together, so this was a very serious departure from Greece.
“But it was made because we strongly believe that this would not be good for Europe.”
Papastavrou said the NZF would not be good for shipping, and would raise prices for consumers.
Several major Greek shipowners had criticised the scheme ahead of the October MEPC meeting, singling out its plan to tax LNG fuel, in which they are heavily invested.
An IMO delegate told Lloyd’s List the NZF in its current form had “almost no chance” of being adopted. He said the Greek abstention meant there was a lot of work to be done to bring states closer to agreement.
Another non-EU delegate said he doubted the bloc would compromise on its support for the NZF, given European companies’ substantial bets on green technologies.
Transport & Environment, a green NGO, said: “This announcement places Greece into a minority of oil-exporting petrostates that opposed a global framework at every step of the way.
“At a time where the EU must reduce its dependence on fossil fuels, now is the time for unity and ambition at the international level.”
In October, Greek Prime Minister Kyriakos Mitsotakis argued in the Financial Times that Europe could not afford to stay on its decarbonisation path.
Mitsotakis said the EU should focus on cost-effectiveness and be technology-neutral.
“While European countries still burn coal in our power plants and oil to heat our homes and factories, we are pushing for the decarbonisation of ships and planes and of the most difficult industrial processes,” he wrote.
“This emphasis on tackling all emissions at once is short-sighted.
“We should scale up those low-carbon technologies that are competitive while continuing to develop the ones that are not — but at a reasonable pace.”
The European Commission did not respond to inquiries.
