States urged to support the IMO Net-Zero Framework over watered down alternatives

As negotiations for the International Maritime Organization (IMO) reconvene in September, new legal proposals have emerged that could threaten the Net-Zero Framework (NZF). This framework, agreed upon in 2023, aims to price emissions from shipping and allocate funds to support developing nations in their transition away from fossil fuels.

The proposed amendments, however, would weaken incentives for investing in zero-emission fuels and reduce contributions to the NZF. The NZF represents a delicate compromise between climate ambition and political feasibility, and reopening its core architecture now risks undoing the consensus achieved in April 2025. A proposal submitted by Liberia suggests replacing mandatory remedial payments with market-based Surplus Unit trading, which would diminish the framework's emissions reduction benefits and the dedicated financing source for developing countries.

Retaining the NZF in its current form would provide regulatory certainty, unlock investment in zero-emission fuels, and establish a solid foundation for further ambition. Climate NGOs Opportunity Green are urging states to support the NZF as it was approved, emphasizing its significance as a landmark multilateral agreement and its role in fulfilling states' duty of cooperation.