{
  "id": 19029140,
  "title": "The IMO NZF as agreed upon in 2025 still remains the most likely way to achieve the IMO 2023 GHG strategy",
  "url": "https://urgent.news/2026/11/08/the-imo-nzf-as-agreed-upon-in-2025-still-remains-the-most-likely-way",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-08T22:00:52.000Z",
  "source": {
    "name": "Hellenic Shipping News",
    "slug": "hellenic-shipping-news",
    "url": "https://www.hellenicshippingnews.com/the-imo-nzf-as-agreed-upon-in-2025-still-remains-the-most-likely-way-to-achieve-the-imo-2023-ghg-strategy/"
  },
  "original_language": "en",
  "account": "MEPC 85 negotiations are intensifying as discussions around the Net Zero Framework (NZF) gain momentum. Several proposals are being considered, but it is anticipated that the outcome will be a composite blending various aspects of each proposal. However, the NZF as agreed upon in 2025 remains the most likely pathway to achieve the revised 2023 GHG strategy. This framework must continue to support the IMO's GHG goals, with each component subject to separate negotiations. Sensitivity analysis conducted by UCL and Rocky Mountain Institute reveals that higher ambition GFI trajectories (GHG Factors Index) and compliance prices (Remedial Units or Direct Contributions) lead to lower cumulative emissions. Even slightly loosening the GFI trajectory could result in higher near-term emissions while making later reductions more expensive and disruptive. Lowering the RU price increases the cost of abatement and impacts states. The 'as-is' RU prices ($100 and $380) maintained constant versus a scenario where RU2 price starts at $380 and increases over time aligns with a scenario where investment and energy transition are sustained, leading to cost-effective emission reduction. However, a 'No RU' policy that only trades SUs for compliance, with vessel impoundment as an enforcement mechanism, still achieves emission reduction but poses high risks of disruption and high transport costs. The proposed 'Direct Contributions' as an alternative to RUs may lead to substantial higher cumulative emissions and increased abatement costs, without the benefit of an IMO GHG fund for addressing JET. Differentiated ZNZ incentives by fuel type (e-fuels and biofuels) are crucial to achieve climate goals. Policies structured without differentiated incentives result in a significant increase in the use of biofuels and fossil fuels in the 2050 fuel mix.",
  "summary": "MEPC 85 is coming up fast, and negotiations for what the Net Zero Framework will look like are increasing in intensity. With several proposals on the table, it is likely that the outcome will be a composite, blending together different aspects of each proposal – although none of the new ideas have improved the entire ...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}