IMO GHG Working Group Discusses Net-Zero Framework Amid Policy Divisions

The International Maritime Organization's (IMO) 22nd Intersessional Working Group on Reduction of Greenhouse Gas Emissions from Ships (ISWG-GHG 22) convened in London from 1-4 September to discuss the future of the Net-Zero Framework (NZF). Divisions regarding the ambition, costs, and fuel pathways of the NZF were reported by Hellenic Shipping News Worldwide.

Proposals from Liberia, Tuvalu, Brazil, and a four-country group comprising Australia, Canada, South Africa, and the UK were under consideration. A later submission from Japan was not circulated six months before the session, precluding its adoption under normal MARPOL rules at MEPC 85.

Member State Proposals and Fuel Debates

Liberia and Panama presented a joint proposal that seeks to remove GHG pricing. Instead, it proposes setting GHG Fuel Intensity (GFI) reduction targets based on the affordability, availability, and scalability of low-emission fuels, with reviews every five years. Panama's ambassador to the IMO, Ginette Testa, stated this approach would support shipping's decarbonisation while protecting global trade and considering challenges faced by developing countries.

US Federal Maritime Commissioner Laura DiBella supported LNG and liquefied biomethane (LBM) as long-term shipping fuels, citing LBM's ability to use existing LNG infrastructure and vessels. DiBella stated that some proposals would limit alternate fuel sources, which she argued would prevent the NZF from becoming an effective substitute for the current system. She added that the inclusion of market-proven alternative fuels, such as bio-LNG, is key for effective emissions reduction initiatives.

Equal Routes warned against giving LNG and LBM favourable treatment without fully accounting for their lifecycle methane emissions. Andrew Dumbrille, co-director of Equal Routes, stated that giving an advantage to methane-based fuels could lock in methane emissions, which he described as a “super pollutant,” for decades. He advocated for LCA guidelines to include sustainability criteria, real-world emissions factors for methane-based fuels, and reflections of GHG emissions from indirect land-use change caused by biogenic fuel production.

Climate Group and Industry Perspectives

Several climate groups pushed back against what they termed a “watered-down” global framework. The Clean Shipping Coalition (CSC) criticised the Liberia-Panama and Japanese proposals, arguing they would weaken financial incentives to shift from conventional fuels. CSC described Brazil’s proposal as a weaker and costlier version of the framework. The CSC was most supportive of a proposal from Pacific IMO members for a levy on all of shipping's GHG emissions, suggesting it would provide a strong incentive to cut emissions and generate funds for the transition. However, the CSC views the existing NZF as the compromise most likely to retain broad support.

Fuel producer groups are lobbying for rules that create demand for low- and zero-emission fuels. The Global Methanol Alliance, which noted 54 green and blue methanol plants are operational or under construction, called for regulatory certainty and sufficient demand to scale production and lower costs. Felicia Mester, Managing Director for Europe and IMO at the Global Methanol Alliance, urged Member States to build on common ground. The Climate Ethanol Alliance called for recognition of renewable ethanol within the framework, citing its existing production scale, supply chains, and marine engine technology.

Future Negotiations and Industry Developments

The final shape of the NZF remains subject to IMO member states’ decisions, with no clear consensus reported on which approach will gain sufficient support. Negotiations are scheduled to continue at the next ISWG-GHG session in November, prior to MEPC 85 from 30 November to 3 December. If a final text is agreed upon, amendments could be formally adopted at a resumed extraordinary session expected on 4 December.

In other alternative fuel news, A.P. Moller – Maersk, Lloyd’s Register, and the ports of Charleston and Felixstowe are modelling a nuclear-powered shipping corridor between the US and UK. Swedish shipping company Wallenius Sol has commenced operating one of its vessels on 100% biofuel (B100) to comply with EU FuelEU Maritime regulations, with plans to extend B100 use to other large vessels. Molgas-owned bunker supplier Titan Clean Fuels will charter a new 6,000-cbm LNG bunker vessel for expansion in the western Mediterranean. Chinese state-owned shipping firm COSCO Shipping has ordered 12 LNG dual-fuel container vessels for delivery between 2028 and 2030.