The International Chamber of Shipping (ICS), which represents over 80% of the world’s merchant fleet, has reiterated its support for the International Maritime Organization’s (IMO) Net-Zero Framework (NZF), a global emissions pricing mechanism that is set for formal ratification in October 2025. However, ICS has warned that the complexity of the proposed rules and the lack of clear incentives could impose significant burdens on shipowners, particularly small to medium-sized companies.
Agreed in principle by IMO member states at MEPC 83 in April 2025, the NZF is a landmark piece of legislation in the regulation of maritime emissions. The framework will incentivise sector-wide decarbonisation by imposing a cost on emissions, driving investment in new technologies and promoting emissions reduction strategies.
However, while the proposed penalties for high emitters have received substantial attention, the absence of equivalent detail regarding the mechanisms for supporting the adoption of clean fuels has prompted calls for greater clarity from IMO.
According to ICS, investment confidence among fuel producers and infrastructure developers is contingent upon both market signals and regulatory coherence. The organisation has called for the rapid establishment of internationally recognised standards for alternative fuels, including e-methanol, ammonia and hydrogen.
Thomas A. Kazakos, ICS Secretary General, stated: ‘The IMO needs to formally adopt the Net Zero Framework in October to send a clear signal to industry and provide the incentive needed to produce these cleaner fuels. Industry needs clarity, simplicity, and detail on the rewards.’
The ICS has submitted a series of proposals to the IMO to support the development of ‘clear market signals’ for fuel producers and shipowners. These include recommended revisions to the framework’s legal language to remove ambiguity and promote uniform application. For example, the ICS has advocated for replacing the word ‘may’ in the legislation with the mandatory ‘shall’.
ICS has also raised concerns regarding potential regulatory overlap with existing regional regimes, particularly the EU ETS. In its submission to the European Commission, ICS has encouraged the replacement of the EU ETS with the NZF as soon as it is formally adopted to mitigate the risk of duplicative compliance obligations and administrative burdens for international operators.
‘We also call on those with unilateral and regional schemes, such as EU ETS, to agree to having one clear and transparent system under the IMO’, Kazakos continued. ‘This is critical if we are to meet the time frames set out.’
The ratification of the IMO’s NZF in October is expected to play a decisive role in shaping the net-zero trajectory of the maritime sector. Shipowners, charterers, fuel suppliers and port authorities are all awaiting a clear and coherent regulatory framework, with a clarified incentive structure, that is capable of underpinning large-scale investment in emissions reduction technologies.
